If EBT is negative than tax will pay

Question

File · Answer

For the income to be taxable, it should be positive... And before such we had to calculate the income as per ITA, 1961 taking into consideration the proper heads of income provided with deductions and exemptions...... As income as per income tax and as per books is different... So if the EBT is negative as per books but income as per income tax is positive then tax will be payable accordingly... Normally when EBT is negative, taxable income is either zero or below basic exemption limit under default Tax regime 115BAC or optional tax regime as given

Dhara · Answer

No, tax is not charged when earning is negative because tax is charged according to the income Negative income means income 0 but some expenses are there Hence there will be no charge of tax ..

Arun · Answer

i think no.. coz when earnings are only not there how can we pay tax..?

If EBT is negative than tax will pay

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