4 Replies to “If a privet company has made a loss do they still pay incometax ?”

  1. income tax is levied on income.. n u have incurred loss it means your income is negative in figure.. so income tax will not be levied. it is levied only on positive figures.. so u don’t need to pay any income tax.. just need to make return of your loss to the concerned authority of your place..

    if u gained in your business in the next year.. you can set off your business loss of your previous year against your income for payment of income..

  2. Income tax will be levied only if you have taxable income. As company has incurred loss, you don’t need to pay income tax. However, you can carry forward the loss to the next year and set off with any profit, if any, you earn in the next year, if you file the Income tax return within due date i.e. 30 Sept

  3. Yes, u/s 115 JB of the Income tax Act you will have to pay MAT if there is book profit. The present rate of MAT IS 18.5%.Hoever, tax credit is allowable to be carried forward for adjustment against future liability.

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