Deemed total income treatment for book profit leads to a fixed tax rate and limits on reserve withdrawals.

Section 115JB is amended to deem book profit the assessee's total income for tax purposes, with tax charged at a fixed rate; amendments to the Explanation revise treatment of withdrawn reserves and provisions (adding withdrawals credited to profit and loss as additions to book profit subject to a proviso) and limit reduction by losses brought forward or unabsorbed depreciation to the lesser amount as per books, excluding depreciation and inapplicable where nil. An exclusion for certain specified reserves is inserted.

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