NIL 5,21,700 18.5% on 28,20,000 Add : Surcharge 1 Total income/book profit does not exceed *1 crore] Tax and Surcharge 10,434 Add : Educatior cess @ 2% of Tax and Surcharge Add : Secondary Higher Education Cess (SHEC @ 1% of tax and surcharge) 5,217 Tax as per MAT provisions 15,651 5,37,351 * 8.80,650 * 5,37,351 227 Final Tax liability As per normal provisions or As per MAT Whichever is higher Total Tax = 8,80,650 ILLUSTRATION 8 Following is the P. and L. A/c of Sonia Co. Ltd. for the year ended 31.03.15. Compute the taxable income of the company for Assessment Year 2015-16. PROFIT AND LOSS A/C To Purchases 2,25,000 By Sales 14,00,000 To General Charges 40,000 By Agriculture Income 55,000 To Commission and brokerage 1,80,000 By Transfer from Investment Reserve 2,00,000 To Income Tax 1,15,000 By L.T.C.G. 2,50.000 To Legal expenses. 65,000 To Fines and penalties 25,000 To Depreciation 2,60,000 To Provision for contingent liability 70,000 To Proposed dividend 1,50,000 To Loss of subsidiary company 2,00,000 To Net profit 5,75,000 19,05,000 19,05,000 Additional Information : 1. General charges include donation to Prime Minister's Relief Fund of Rs 22,000. 2. Depreciation as per Income tax Act * 3,00,000. 3. Brought forward Business Losses and Depreciation. As per A/cs. As per I.T. tax B/P business Losses 3,00,000 4,00,000 Unabsorbed Depreciation 50,000 4. Investment Reserve was created during Previous Year 2000-01 as a result of profit on 1,50,000 revolution of investment directly credited. 5. The LTCG has been invested in NHAI Bonds as per sec. 54EC. Calculate the tax liability as per Normal provisions of I.T. Act and as per MAT. Is the company entitled to any tax credit under section 115 JAA