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Book profit for MAT under Section 115JB starts with:
AAudited financial profit
BTotal income under normal provisions (per relevant Section)
CProfit before tax in tax audit
DNet profit per P&L adjusted for prescribed items
Answer & Solution
Correct answer: D. Net profit per P&L adjusted for prescribed items
1. Section 115JB(2): book profit computed from net profit per P&L under Companies Act.
2. Additions: income-tax provision, dividend, deferred tax provision. Deductions: withdrawals from reserves, AOP share, etc.
3. MAT = 15% of book profit (plus surcharge and cess).
_Source: ICAI BoS CA Final Paper 7, Ch 9 "Assessment of Various Entities"_
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