ANZ Ltd. is a resident company. Its profit and loss account for the year ended 31st March, 2023 shows a net profit of ₹2 crore after debiting/crediting the following items: Items Amount (₹) (a) Depreciation on Assets (In

Computation of Book Profits and Minimum Alternate Tax (MAT) for ANZ Ltd. (AY 2023-24): As per Section 115JB of the Income-tax Act, 1961, for computing book profit, the net profit as shown in the profit and loss account prepared in accordance with Schedule III to the Companies Act, 2013, is to be adjusted for certain items. Particulars Amount (₹) Amount (₹) Net profit as per P&L Account 2,00,00,000 Add: Items to be added as per Explanation 1 to Section 115JB (a) Depreciation debited to P&L (including revaluation of ₹5 Lakh) 45,00,000 Less: Depreciation on revaluation (not to be added back) (5,00,000) Net Depreciation to be added back 40,00,000 (b) Provision for tax 30,00,000 (c) Proposed dividend 20,00,000 (d) Transfer to general reserve (from additional information) 5,00,000 (e) Provision for actual loss from subsidiary (from additional information) 10,00,000 (f) Provision for leave encashment (scientifically calculated) (from additional information) 3,00,000 Total Additions 1,08,00,000 Sub-total (Net Profit + Additions) 3,08,00,000 Less: Items to be deducted as per Explanation 1 to Section 115JB (a) Interest income from Bank fixed deposits (credited to P&L) 5,00,000 (b) Allowable depreciation (as per Income Tax Act) 28,00,000 (c) Brought forward business loss or unabsorbed depreciation (whichever is less) Unabsorbed depreciation (2018-19 + 2019-20) = ₹2,00,000 + ₹1,00,000 = ₹3,00,000 Business loss (2018-19 + 2019-20) = ₹7,00,000 + ₹3,00,000 = ₹10,00,000 Lower of the two = ₹3,00,000 3,00,000 Total Deductions (36,00,000) Book Profit for computation of MAT u/s 115JB 2,72,00,000 Computation of MAT: 15% of Book Profit (₹2,72,00,000 x 15%) 40,80,000 Add: Surcharge (if applicable, assuming company income > ₹1 crore but <= ₹10 crore, surcharge @ 7%) 2,85,600 Add: Health and Education Cess (4% of (40,80,000 + 2,85,600)) 1,74,624 MAT Payable 45,40,224 Note on Depreciation: Depreciation debited to P&L (₹45 Lakh) includes ₹5 Lakh on revaluation. For MAT purposes, depreciation on revaluation is to be excluded from the amount added back. So, only ₹40 Lakh (₹45L - ₹5L) is added back. Then, the depreciation as per Income Tax Act (₹28 Lakh) is deducted.