Deferred tax and its provision debited to the profit and loss account are treated how for MAT?
ADeducted from book profit
BAllowed as a rebate
CIgnored by the officer
DAdded to book profit
Answer & Solution
Correct answer: D. Added to book profit
The amount of deferred tax and the provision for it is one of the add-backs when book profit is worked out.
Keep practising Special Tax Regimes for Companies
Browse all Special Tax Regimes for Companies questions for CA Final, or explore more Taxation topics.
Related questions
What do tax havens do, in the context of tax avoidance?Bilateral double taxation treaties aim to avoid what outcome?A General Anti-Avoidance Rule is aimed at which behaviour?Tax avoidance differs from tax evasion in that avoidance is what?Which companies can opt for section 115BAA?From which assessment year does section 115BAA apply?Under 115BAA, how is loss from barred deductions treated later?What depreciation can a 115BAA company not claim under section 32?