4,44,000 NIL Tax liability as per Calculation of Tax liability under MAT Book Profits 24,00.000 Tax @ 18.5% of 24,00,000 Add : Surcharge [Total Income/book profit does not exceed 1 crore] Add : Education cess @ 2% of Tax and Surcharge 4,44,000 8,880 4,52,880 4,440 Add : Secondary and Higher Education Cess (SHEC @ 1% of Tax and Surcharge) Tax as per MAT Scheme 4,57,320 2,41.807 *4,57,320 730 3 Final Tax liability (a) Tax liability at Normal Provision (b) Tax as per MAT scheme Final Tax liability (a) or (b) whichever is Higher Hence, Tax liability = 4,57,320. ILLUSTRATION 16 KML Ltd. is a domestic company in ich public are substantially interested. It showed a net profit of 74,00,000 for the previous year 2014-15 after providing for taxation of 3,50,000 but before providing for depreciation. The following are other particulars. 1. Depreciation 2. Brought forward business loss JO 3. The net profit include the following (a) Dividend from DBN Ltd. Kolkata (b) Short term capital gain on sale or units 87,000 (c) Long term capital gain on sale of jewellary (d) Following items have been debited to profit and loss Alc (1) Expenses on maintenance of holiday home (ii) Penalty levied for infringement of excise laws (iii) Donation to National Defense Fund (iv) Donation to an approved institution to be utiled for promoting family planning (e) The amount of dividend distributed by the company during 2014-15 Compute the total income and tax payable by the company under normal prons for the Assessment Year 2015-16. 60.000 68,000 32.000 12.000 14.000 21,000 12.80.000