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lon 11 JAATA Freditor SISAVIA to other words hanyut of tipa under sect 115) by an in company for year cement on the ist day of April 2006 any sequently INFO of a paid shall be allowed to him in cordance with the promise the of Credit. The amount of credit be given shall be the difference between a Asessment years 115JAI) of us 115 as the case may be) and the amount of by the assess on its total income of tax credit MAT Tax payable on total income computed as per normal provi on a year when tax becomes payable on the total income computed in accordance with the sal provisions of the Income Tax Act, 1961. In other words, tax credit is available in the pre Year in which tax credit shall be available Section 115JAA Tax credit shall be allowed which ar as per thermal provisions of Income Tax Act is more than the tax payable under MT Tax credit cannot be set off against minimum alternate tax payable under section 115JB Period for which tax Credit is available (Section 115JAAJA). With effect from Aussent Yaar 2007-08, the amount of tax credit shall be carried forward and set-off upto Seventh Assessment Termediately succeeding the assessment year in which tax credit become allowable under section of Income Tax Act GAMTA) However uptor Assessment year 2006-07, such carry forward and set-off was allowed upto 5th Site . No interest shall be payable on the tax credit allowed under sub-section (1) of section 1151AA en year immediately succeeding the assessment year in which tax credit became allowable Increase/Decrease of Tax Credit Where is a result of an order under sub-section (1) or sub-section (3) of section 143, section 144. stion 147, section 154, section 155. sub-section (4) of section 245D, section 250. section 254. lection 260, section 262, section 263 or section 264, the amount of tax payable under this Act is placed or increased as the case may be, the amount of tax credit allowed under this section shall aslo he increased or reduced accordingly. ILLUSTRATION 3. Rao Ltd. a domestic Ltd. company, provides you following Profit and Les Account for computation of tax liability for Assessment Year 2012-13. 2 By Sales To Direct wages By Closing Stock A/C To Freight To GP od 49.02.500 NIS To Purchases 75.25.000 1.10.000 18.75,000 8,45,000 12.500 76,35.000 76,35,000 49.02.500 17.500 To Salaries To General exp To sales expenses To Director's remn. To Income tax To Penalty (excise) To Proposed dividend To Provision for losses of substdiary company 8.50,000 By G.P bld 4,35,000 By Dividends from Indian 2.15.000 domestic co 8.22,000 1.80,000 10,000 3.20.000 2.00.000 18.88,000 To Net profits 49,20,000 49,20,000