Year-1 Year-2 Year-3 Year-4 Year-5 Year-6 Year-7

PBT <== CA 100 100 100 100 100 100 100

Dep-SLM 100 100 100 100 100 100 100
DEP-IT (Accelerated) 300 300 150
Taxable Income <==PRO -100 -100 50 200 200 200 200
PBT + SLM DEP - ACC DEP = TAXABLE INCOME'
CARRY FORADDITIONS ==> IF LOSS THEN ADD SETOFF ==> WHEN PROFIT 100
ADDIITIONS = LOSS AMOUNTIN THE YEAR MIN(TI, ABS(OP CFL))
BOP CFL 0 -100 -200 -150 0 0 0
ADDITIONS - CFL -100 -100 0 0 0 0 0
SETOFF - CFL 0 0 50 150 0 0 0
EOP CFL -100 -200 -150 0 0 0 0

GROSS TAXABLE INCOME 0 0 0 50 200 200 200

CORPORATE TAX 30% 0 0 0 15 60 60 60

PBT 100 100 100 100 100 100 100

TAX EXPENSE 30% 30 30 30 30 30 30 30

MIN ALT TAX IF U SHOW PROFIT TO INVESTOR MINIMUM ALT TAX

MAT 20% 20 20 20 20 20 20 20

TAX PAYABLE 20 20 20 20 60 60 60
MAT CREDIT ==> ADVANCE TAX PAID SETOFF ==> CT > MAT
MAT CREDIT SET-OFF MAT CREDIT IF MAT > CT,
HOW MUCH CREDIT ==> MAT - CT MIN(CT - MAT, BOP MAT CREDITS)
BOP-MAT CREDITS 0 20 40 60 65 25 0
ADDITION-CREDITS 20 20 20 5 0 0 0
SET-OFF CREDITS 0 0 0 0 40 25 0
EOP CREDITS 20 40 60 65 25 0 0

NET TAX PAYABLE 20 20 20 20 20 35 60

CHANGE INcfs
D 10 10 10 10 10 -5 -30
DTL bs 10 20 30 40 50 45 15
60

50

40

30

20

10

0
1 2 3 4 5 6 7 8
 Year-8

100
50

150

=ABS(-100)

0
0
0
0

150
45 240

100
30 240

20

45 305

65
MAT CREDITS)
0
0
0
0

45 240

-15
0

7 8
 MCA MOF 1
2
REGISTER IT DEPT 3
R&D ROC
10MN IN RESEARCH 10/4
NOT TO BE CAPITALISE FIN STAT FIN STAT
COMPANY'S ACT INCOME TAX ACT

ANNUAL REPORT==> IS/BS/CFS IS/BS/CFS

GAAP DEP==> SLM GAAP DEP===> ACCELERATED
SLM WDV
PBT <> TAXABLE INCOME (PBT)
===> TAX EXP <> TAX PAYABLE

DEFERRED TAXATION MISMATCH

PBDT = PBDT
DEP-SLM DEP-ACC DEP
PBT <> TAXABLE INCOME

PBT + SLM DEP - ACC DEP = TAXABLE INCOME'

CF TAX LOSSES
MAT
DEFERRED TAX