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SERIES
  • 7/2/2025
Transcript
00:00assessment of companies labor the radio one one five J below provisions some
00:19illustrations in path from another one more illustration now I'm going to
00:22discuss the profit loss of code of was that limited for the year ended 31st
00:27Mars 25 is this one complete the tax life in solar karana in the summer number
00:33in the modeling calcuttoniclum normal income tax provisions based penny as
00:37well as special provisions as per mat 115 JBUHC let's start with net profit from
00:47the books okay other than other than mad provisions in a chipotle net profit in
01:02this case being one crore 23 lakhs 80,000 rupees okay one crore 23 lakhs 80,000 rupees
01:21and now check the debit side and credit side one after one adjustments the amount of depreciation
01:36includes depreciation and revaluation of assets 50,000 revaluation order either include
01:411,1,5 JBUHC further further for the purpose of income tax depreciation is 4 lakhs so 4 lakhs
01:49more the disqualify paniclum 5 lakhs and 4 lakhs any claim paniclum redicular difference over 1 lakh
01:56mountain any disqualify paniclum depreciation reduced our excess claim added back what about this 50,000
02:06so that will be applicable that will be applicable for 115 JBUHC applicable clear turnover of the company
02:15during the previous year was 530 crores however during the financial year 21, 22 the turnover is
02:22only 250 crores okay probably 22, 23 in the previous year 20, 4, 25 23, 24
02:35in the previous year turn over less than 400 crores are less than 400 crores tax rate only 25% so in the illustration
02:47tax rate on the number 25 percentage apply for the month clear so in the date amount to 22, 23 and
02:55tax rate yeah and this is for calculation of tax rate in past few years company had suffered losses foreign balances
03:09are still unabsorbed as per the income tax act either ending in deductions claim paniclum 115 JBUHC
03:16then whichever is lower can be deductible nothing is there so nothing is deductible for this purpose
03:22where and then raw material consumed regular rent regular salary and wages regular business expenses
03:30revenue nature provisions always disallowed so provision disallowed value being 75,000 provision for contingencies
03:40okay wealth tax wealth tax income tax you know income tax you know income tax you know income tax
03:47currently okay so we don't have the wealth tax here direct taxation employment disallowed so add income tax direct tax
03:59wealth is meant by other level which means that we have to leverage tax we have to levy to do this
04:06while my studies in final it was the last chapter we have to pay to earn 25 of his month, we have to pay for this
04:10while my studies in final it was the last chapter and we have to get to earn 25 of our month to finish this
04:14So, this is also income tax. This is disallowed in section 40 class A. So, 50,000 is added back.
04:34Provisions for bad debt, dividend and income tax everything is disallowed. Provisions are
04:40disallowed. So, provision for taxation, provision for bad debt, proposed dividend. All are disallowed
04:49only. Provision for taxation being 1,500,000 disallowed. Provision for bad debt 40,000 disallowed.
04:56Proposed dividend 1 lakh also disallowed. Now, overall value being 123.8 plus 1 lakh plus
05:0875 plus 50 plus 2 lakhs 45. So, 1 crore 28 lakhs 50,000 rupees
05:26minus broad forward business loss and unabsorbed depreciation.
05:32Closing stock allowed, sales allowed. Revaluation reserve, GR, these two are not allowed. So,
05:48it is subtracted. Revaluation reserve, 25,000. GR, 1 lakh team, you remove. If I subtract the 1 lakh 25,000 from 1 crore
06:0228 lakhs 50,000 rupees, this value being 1 crore 27 lakhs 25,000 and minus
06:11broad forward business loss as well as unabsorbed depreciation.
06:17So, depreciation 66 is over 35.5 lakhs. So, broad forward business loss 35 lakhs 50,000 rupees
06:27unabsorbed depreciation. Unabsorbed depreciation 60 lakhs. Rendi,
06:33deductions claim, set-off penalty column, panna peregru, enna korudhu adha. Total income for the taxation
06:38purpose at the rate of 25 percentage tax will be leviable 25 lakhs 75 percent.
06:43Now, this illustration, mat provision, calcate pana peregru, enna korudhu adha.
07:00So, this is a normal provision. Now, I am going to recalculate using mat provisions, mat provisions.
07:20Here is a mat provision, other than mat provision. Now, I am going to solve
07:37using the mat provisions.
07:40As per the mat provision, you have to start with a net profit as per the
07:52PN Telephone prepaid, 1 crore 23 lakhs, 80,000 rupees. Depthalization and the in the 5 lakhs disallow
07:59pannnou, other than add back pannou, anna subtract pannam boudhu inge nama patham liya.
08:03So, this is a very important thing. Now, I am going to recalculate using the mat provision.
08:05So, I am going to recalculate using the mat provision. I am going to recalculate using the mat provision.
08:07So, I am going to recalculate using the mat provision.
08:09So, I am going to recalculate using the mat provision.
08:11As per the mat provision, you have to start with the net profit as per the PN Telephone prepaid,
08:13Depthalization and the in the 5 lakhs disallow pannou, other than add back pannou, anna subtract
08:20pannam boudhu inge nama patham liya, in the 4 lakhs maandad dha subtract pannou,
08:24but adhu revaluation pannadhu kaha ghe raavudhu nishana, adhu inge exclude pannu yuron,
08:28so 4 lakhs, 50,000 rupees, 3.5 lakhs thang inge debit pannam boudi.
08:33Appa, yevudu varikki disallow avagudu eppri chanakko, 1 and a half lakhs varikki
08:36namakku disallow avagudu. So, 1 and a half lakhs, okay.
08:40For the purpose of income tax, depreciation is 4 lakhs, okay.
08:43Depthalization, in the depreciation illa, in either thavira, sorry, in the 50,000 thavira,
08:47min ni inge claim panniklaam. Apari nama moda, in the 50 lakhs, 5 lakhs,
08:51ni inge add back panniklaam. Depthalization as per the books,
08:55revaluation reserve rate depthalization kohga mitcha irukkatha, ni inge subtract panniklaam.
08:58Depthalization other than revaluation reserve, revaluation of assets.
09:03In the 50 lakhs, ni inge subtract panniklaam, balance 4 and a half lakhs, ni inge subtract panniklaam.
09:09Okay. Section 32, ni inge par kawandhi avasimit. You have no need to worry about that
09:13Section 32, here. Apart from that, other things,
09:16you inge chalame same dhaa, ithara onnume illa, whichever is lower can be detectable,
09:20adunume illa. Apadhi, inge both, raw materials okay, rent okay, salary okay,
09:24idhu moodithi atzi. Provisions alame disallowed. Inge provisions for contingencies disallow panniklaam.
09:31This value being 75,000. And income tax, income tax allowed in this case. Section 40 class A
09:41provision of the disallowed but inge mat provisions allowed it. And I were in the provisions in
09:45inge claim bannamdia. So I had provision for doubtful debts and proposed dividend
09:51and provision for income tax. So 40, then 1 lakh, then 1 lakh 5,000, 1 lakh 5,000.
10:07In that level, in the wealth of the tax, in the income tax, in the case, in the park kawandhi avasimit,
10:10that is allowed only. And the total value being now, okay, I think ngre alu,
10:20vitti irabudhu okay, in the last setting now, 1 crore, 32 lakhs is the value.
10:26Adhu landhu 4 lakhs 50,000 debt decision subtract pannthikna, adhu matthi milla, revaluation reserve
10:33and general reserve, if any, any amount transfer there should also be removed because ith wandhu
10:38expenses income kadayadhu. Yerathne yirindh taxed income adha,
10:42nengi use pannthikna, adhu remove pannnye irunom. Appya in the 3 thii,
10:45nama remove pannnamnana, 5 lakhs 25,000, 5 lakhs 75,000, nama remove pannappooram.
10:52And mat today book profit being, 1 crore 26 lakhs 25,000. 1 crore 26 lakhs 25,000.
11:02Now I am going to calculate the tax here. Tax calculate pannampoodhu,
11:06in the page in the page. Normal tax, normal tax, normal tax. Yerathne calculate pannampoodhu,
11:1525 lakhs 75,000 based pannampo calculate pannampo, okay, 20, normal income, 25 lakhs 75,000.
11:25Book profit in the page. Book profit in the page is 1 crore 26 lakhs 25,000. 1 crore 26 lakhs 25,000 is the book profit.
11:37And tax normal tax as per mat.
11:46I am going to calculate panniklaam. Normal varampoodhu, 25 percentage in the tax rate apply pannappoodhu,
11:526 lakhs 43,000, 750. Book profit which mad pannappoodhu, 15 percentage will be levyable.
12:01That is around 18 lakhs 93,750. Okay. Whichever is higher will be real tax payment. 18 lakhs 93,000, 750.
12:14And of course, you can add the surcharge also. Surcharge 1 crore. Okay. Your profit is 1 crore
12:24may request for the book profit. So, surcharge the rate of 7 percentage will be levyable. 10 crores
12:29may under 12 percentage will be levyable. So, 7 percentage putting now 1 lakh 32,563. Add this
12:3820 lakhs 26,313. You have to add the health and education says at the rate of 4 percentage on this.
12:474 percentage will be calculated here. The value being 81,053.
12:53And the final tax payable being tax liability. Okay. After rounding off under section 288B.
13:01The nearest to 10 rupees in round of panniklaam. Then this value being 21 lakhs 7,370. Clear?
13:19The following further information are also provided.
13:23By the company.
13:29Yeah.
13:34Okay. By the company.
13:39Provision for tax includes 2 lakhs interest payable on income tax.
13:43As per section 115G. JAB book profit.
13:47Calculate pannappoorohon.
13:48Interest is also considered as part of income tax. So, it is also be not deductible. So,
13:55in the entry in the particular transaction has no meaning at all. One hint madu kudunga.
13:59Income tax includes the interest on that also not to be deductible.
14:04Depreciation includes 40 lakhs to its revaluation reserve.
14:07Apooron.
14:08Pn the 100 lakhs let 40 lakhs focus 60 lakhs vandud then you debit pannik ke moodyiwum.
14:11Apooron.
14:12100 disqualify pannudga 60 lakhs debit pannudga.
14:1550 lakhs credited to the statement of profit loss was drawn from revaluation reserve.
14:20So, P&T level revaluation result and the credit is done, that is reverse, that is the credit
14:27and the profit increase is removed, but the depreciation extent is the depreciation extent
14:34whichever is lower off, in the one point, mind-loving.
14:39So, let's see, near profit as per the books 190 lakhs, add depreciation as per the books
14:50100 lakhs, 100 lakhs, reserve for forex, forex reserve, foreign exchange reserve, 50 lakhs,
15:06is that okay?
15:08And then provision for taxation 40 lakhs, proposed dividend 120 lakhs, okay?
15:23So, the value being 190 plus 100 plus 50, 190 plus 100 plus, 50 plus 40, 90 plus 120, yeah.
15:40So, you get fined, you get fined.
15:56Minus what?
15:57Depreciation eligible for climbing being 60 lakhs, this is A, this is B, this is A minus B, which
16:03is C. Depreciation 60, revaluation reserve reserve reserve reserve reserve reserve reserve reserve
16:1060 lakhs, this is A, this is B, this is A minus B, which is C. Depreciation 60, revaluation
16:23reserve remove, credit, but whichever is lower of revaluation reserve predicted in the books
16:34and deprecation on revaluation reserve. So, revaluation reserve predicted in the 50 lakhs, deprecation
16:40being 40 lakhs, whichever is lower, 40 lakhs can be subtracted. Balance of SOPA statement
16:49of profit and loss shown in the balance sheet at the asset side being 30 lakhs. Asset side
16:54is a loss, which includes unabsorbed depreciation 20 lakhs, business loss 20 lakhs, unabsorbed
17:03depreciation 10 lakhs, total loss debit, 30 lakhs. So, in the 100 lakhs, this will be C minus
17:17D minus whichever is lower of broad forward business loss or depreciation, unabsorbed depreciation.
17:2710 lakhs subtract 10 lakhs subtract 10 lakhs subtract you will be getting 390, 390 lakhs is the
17:33book profit here. Is that clear? Yeah. So, it is kind of theory in the future. So, it is
17:41kind of theory in the future. Interest paid on that will also be part of income tax not deductible
17:55in the future. So, it is kind of theory. Interest paid on that will also be part of income tax not deductible
18:04in the future. In the future, you can restrict only this much. That is, you can restrict only
18:11this much. That is, you can reverse reverse reserve. So, one more comprehensive illustration. Assuming that the
18:25sonalimiter is not required to comply with an Indian accounting standards. So, OCI is the
18:31CMA final. That is, the math calculation, the second part OCI is the guide. Ignore the provisions of
18:43section 115 BIA. That is, 22 percentage tax rate will be the provisions. Let us start with profit as per the
18:51books. Near profit as per the books, 15 lakhs. Provisions for the loss of subsidiary, add
19:04to the doubtful debts, add to the provision for taxation, add to the provision for graduate
19:09property based on actuarial valuation. Based on actuarial valuation, usually provisions
19:13are required. Actuarial valuation is required to add. Depreciation add back because it is going to be
19:19separately treated. Interest and financial institution unpaid before filing. In section 40 class,
19:24E-L dedections are disallowed. If the interest payable to financial institution's bank remains unpaid,
19:31in the case of 1,15, J-B. J-B is deductible but it is not deductible. Clear? Penalty,
19:47that is, penalty infraction of law in section 37 general dedections is not deductible but we are studying
19:56115 J-B. So, you don't need to worry about these two and just give the hint on this why you don't
20:04subtract. So, add loss from subsidiary, subsidiary company 70,000 rupees and provision for doubtful debts
20:1675,000, provision for income tax, 1,05,000, 1,05,000 and depreciation 3,60,000, 3,60,000, okay.
20:36So, in the page, we will record. In the next page, I may do this way.
20:55Now, items credited to statement of profit and loss, profit from unit established in special economic zone,
21:0310.00 WA, 10.00 WA, if you already know security, you can do it.
21:08But, section 10, 11, 12 in such physician, that is, you can't disallow and remove but you can't do it.
21:1610.00 WA, 10.00 WA, 10.00B.
21:20Share in income of AOP as member, AOP member has taken the same check.
21:26Usually, partnership firm is not taxable, it is not taxable, it is not taxable, it is
21:35not taxable.
21:36It is not taxable.
21:37It is not taxable.
21:38Income from units of UTI, also be taxable only in the unit holders, not here.
21:43So, that is why you are taxable or treatable, credit is correct, so you don't need to do
21:50any more adjustments here.
21:52Income from units of UTI, this is a unit holder, if the company being the unit folder, it
21:57is going to be taxable in their own hands, so that is not safe, it is not removed.
22:01Long term capital gain on sale of building also be considered for the taxability.
22:08Only this part is going to be removed, only this part is going to be removed.
22:14Deposition includes 150,000 on account of revaluation of fixed assets, revaluation, depreciation
22:19and minus 1, I think this will be 360,000,000,70,000 and 75,000, and 6,10,000,000 is the value.
22:31we add that 6 lakhs 10,000 with 15 lakhs this value being 21 lakhs 10,000 less depreciation
22:43depreciation on the 360 the revaluation 150 after the other month to qualify the directions balance
22:512.1 lakh can be deductible depreciation as per income tax act on this section 32 is for the
23:00regular provisions not for the 115 jb broad forward business laws of the account of the
23:06company is 10 lakhs which includes unabsorbed depreciation 4 lakhs unabsorbed depreciation
23:114 lakhs balance the business tax 6 lakhs which ever is lower can be deductible 4 lakhs can
23:16be deductible AOP of which the company's member has paid tax at the maximum marginal tax rate
23:23so in the 1 lakhs already taxed already taxed recipient handle taxable
23:33cut a little remove so AOP share AOP share should be removed the taxable cut a little income
23:41taxable income tax includes 45,000 interest payable on tax income tax as well as interest
23:50randomly discounted the payable debit as per section 1.5 jb income tax includes the interest
23:59payable on that also so don't worry about that so whichever is lower of business laws as well
24:06as unabsorbed depreciation so here is 4 lakhs or 6 lakhs render whichever is lower 4 lakhs can be
24:15subtracted okay so subtract from an item 7 lakhs 10,000 rupees if I am subtracting the 7 10 from
24:2221 lakhs 10,000 then taxable value be book profit book profit being 14 lakhs and you can calculate the
24:32mat here mat being 15 percentage on this 15 percentage being 2 lakhs 10,000 surcharge is
24:39not applicable as the income is lesser 1 crore but health and education says at the rate of 4
24:43percentage will be labiable which is 8,400 so the total tax payable being 2 lakhs 18,400 2 lakhs 18,400 okay
24:5246 a then I will go for 115 qa section 46 a is all about capital gain on buyback of shares or specific securities in the
25:09I will give you a short click
25:19I will give you a short click it should not be domestic company and it should be a specified securities under section 77 a
25:39what about what about the buyback of domestic companies are that we separately discussed
25:48buyback of shares and securities, that is one domestic company, domestic company shares,
26:17okay, in the end of the year, domestic company shares, and specified securities, shares other than domestic company as well as specified securities, in the case, buyback upon both,
26:41is that clear, what about the impact of domestic company, and in case, buyback is done by foreign company,
26:56foreign company, in the end of the year, okay, capital gain, buyback price,
27:06in case of domestic company, the tax will be taxable only in the hands of the price,
27:13not in the hands of the shareholder, shareholder exemption,
27:20foreign company buyback upon the year, company not taxable, shareholder taxable,
27:27in case of domestic company, the tax will be taxable only in the hands of the company, not in the hands of the shareholder, shareholder exemption,
27:42foreign company buyback upon the year, company not taxable, shareholder taxable,
27:49where the capital gain in this case is equal to buyback price,
27:52but the issue price could have,
27:54probably he might have purchased from secondary market,
27:56cost of acquisition will be taken, cost of acquisition will be taken,
27:59I will say,
28:01minus issue price,
28:03minus issue price,
28:05probably 10 rupees issue,
28:07the difference of capital gains,
28:09that will be the taxable,
28:10in the hands of the shareholder,
28:11foreign company taxable,
28:13it is taxable only in the hands of the shareholder,
28:14where the capital gains, in this case, is equal to buyback price,
28:18but issue price,
28:20probably might have purchased from secondary market,
28:22cost of acquisition will be taken. Now, this will be in the hands of the company taxable
28:36at the rate of 20 percentage plus 12 percentage surcharge as well as 4% health and education
28:46services will be applicable under section 115 QA. Even the exemption will be section 10
28:55class 34A. Foreign company taxable in the hands of the recipient as per the provisions
29:05of section 46A buyback price as well as taxable will be computation then as per section 48.
29:13So, other than under 46A we will go for 115 QA and so there. So, hope you will be able
29:20to understand this will be applicable for other than domestic company, domestic company shares
29:28and specified securities. Now, in case of domestic company shares, so here you have to understand
29:41that is 115 QA. Other than rate 20 percentage, surcharge flat rate 12 percentage and 4% health
29:48and education services will be added. Other than foreign company have the taxable in the hands
29:53of the shareholder. Suppose, domestic company shares, shares around both. Now, 2024, 1, 10, 24,
30:081, 4, 1, 10, 24, 1, 10, 24. Either before, either after, on or after this date. Before,
30:28I recompose it. Now, the same logic will be applicable. In the hands of companies,
30:38company and in the hands of shareholder. In this case, for shareholder, it is exempted
30:47to section 10 class 34A . Company to come both section 115QA will be applicable in the
30:59date claim in the community. After this period 1 4.2024 on or after, this will be totally
31:07exempted in the hands of the company, exempted in the hands of shareholder under section 46A
31:17and 46A. But it is one thing that you can get. Any amount you get, this is very much
31:25of interest.
31:301, 10, 24, on or after that date, you can share. Two aspects are going to be covered. One is,
31:41whatever the buyback price you will be getting, you know, that will be your income from other
31:46sources. Sir, cost of acquisition is considered as a loss like and you can carry forward and
31:57set off. Under section 46A. Shareholder income from other sources is the consideration for
32:03the buyback and set off and carry forward loss will be this cost of acquisition. This cost
32:10will be applicable in case domestic capital shares are applicable. That too on or after this.
32:29Practical illustrations are also available in inter-level lecture. I request you to finish up those
32:34things like it. So, as already I explained 115QA slightly test in the section 46A. Let me finish
32:43up the rest here. Tax and distributed income to shareholders.
32:48It is actually shareholder income tax means income distribute
32:53by way of by way of domestic company. Domestic company distributing income on buyback of its own share.
33:00Buyback company purchases it back its own shares is called buyback through which income may be
33:08distributed. Okay. Consideration paid will be considered as distributed income. Tax rate
33:14will be considered as distributed income. Okay. The tax and distributed income is final. And no further credit can be claimed to be the company or shareholder.
33:21You know, the final credit credit is required.
33:37This is the final credit credit is the final credit.
33:43So, 115 QA. So, 115 QA in that will be applicable, in that will be applicable. So, you have
33:57to understand this, domestic company. Apart from that, if you are delaying that settlement
34:0514 days, 14 days, interest rate of 1% per month or part thereof is payable on the unpaid
34:12amount, okay, for every delayed period as per section 115 QB. And in the deductions,
34:21and the company on the NN Sulawangna deemed to be an ASSEE in default 115 QC and all the
34:28provisions regarding the non-compliances like the penalty and other charges may be reviable
34:36on the company under section 115 QC. So, either let me buy back shares related, make
34:42a note of it in detail, it may be the expected question and the latest update in it, okay.
34:47So, with that.