TaxTMI 
TaxTMI 
Question - What are the proposed changes in Section 115JB in Finance Bill 2015 ?
Rationalising the provisions of section 115JB
28 Feb 2015 
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Exclusion from Minimum Alternate Tax: AOP member exempt income and FII securities capital gains removed from MAT base, expenses added back.
Proposed amendments exclude from book profit for MAT computation the share of a member of an AOP that is exempt under the Act and income of a Foreign Institutional Investor from securities transactions treated as capital gains (excluding certain short-term capital gains where STT is not chargeable). Corresponding expenditures debited to the profit and loss account that relate to these excluded amounts are to be added back to book profit. New explanatory clauses will implement these reductions and matching add-backs in the book profit definition for MAT. (AI Summary)
Proposed amendments exclude from book profit for MAT computation the share of a member of an AOP that is exempt under the Act and income of a Foreign Institutional Investor from securities transactions treated as capital gains (excluding certain short-term capital gains where STT is not chargeable). Corresponding expenditures debited to the profit and loss account that relate to these excluded amounts are to be added back to book profit. New explanatory clauses will implement these reductions and matching add-backs in the book profit definition for MAT. (AI Summary)