Special provision for payment of tax by certain companies

When an assessee is a company and the income tax on the total income computed under this Act for any prior year relevant to the assessment year beginning on or after the first day of April, 81[2012], is less than 18.5 percent of its book profit, that book profit is deemed to be the assessee's total income, and the tax payable by the taxpayer on such total income is the amount of income tax at the applicable rate. Every assessee, which is a business other than a firm mentioned in a clause, is required to submit their profit and loss statement for the pertinent prior year in accordance with the guidelines in Part 2 of Batch System to the Companies Act, 1956 (1 of 1956).

Every assessee, who is a company, must prepare its profit and loss account for the relevant prior year in accordance with the Act's provisions in order to comply with this section. This requirement applies to companies to which the proviso to sub-section (2) of segment 211 of the Companies Act, 1956 (1 of 1956) applies.

News on 80g exemption list.

When preparing the annual accounts, including the profit and loss account, the significant accounting, the accounting standards adopted for preparing such accounts, such as the profit and loss account, and the method and rates adopted for calculating the depreciation, shall be the same as those that have been implemented for the purpose of preparing such financial records, including the profit and loss account, and placed before the company at its yearly general meeting in accordance with the amendment.

The percentage of tax must include any taxes imposed on profits made available under Section 115-O or on income distributed under Section 115R, any interest assessed under this Act, any service charge imposed by the Central Acts from time to time, any Learning Cess on income tax imposed by the Central Acts from time to time, and any Secondary and Higher Education Levies on income tax imposed by the Central Acts from time to time.

Every business to which this law stipulates must submit a report in the recommended form from an auditor certifying that the book profit has been calculated in accordance with the requirements of this section, along with the return of income submitted in response to a notification or under subsection (1) of section 139.

Facts on section 12a of income tax act.