Skip to content

CS Professional · Advanced Direct Tax Laws and Practice · Computation of Total Income, Tax Liability and Filing of Return of Companies

Under section 352 of the Income-tax Act, 2025, the accreted income computed as aggregate asset value less total liability is subsequently reduced by which amount?

The accreted income is reduced by the portion attributable to specified assets and the liabilities related to those assets. The section provides no reduction for brought-forward losses, earlier tax paid, or a percentage of asset value.

  1. AThe amount of accreted income attributable to specified assets, and liabilities related to such assetsCorrect
  2. BThe tax paid earlier by the specified person on its other income
  3. CFifty per cent of the aggregate fair market value of assets
  4. DThe brought-forward losses of the specified person

Explanation

Sub-section (3) says the accreted income computed under the formula is reduced by the amount attributable to specified assets and liabilities related to such assets. Nothing in the section allows reduction for brought-forward losses or earlier taxes.

Did you get it right without looking?

One question tells you little. A timed set on Computation of Total Income, Tax Liability and Filing of Return of Companies shows your real accuracy, how long you take and where you lose marks.

Practise Computation of Total Income, Tax Liability and Filing of Return of CompaniesFree diagnostic mock

More Computation of Total Income, Tax Liability and Filing of Return of Companies questions