The Central Board of Direct Taxes (CBDT) issued a press release stating that with effect from Assessment Year (AY) 2018-19, in case of a company, against whom an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under Section 7 or Section 9 or Section 10 of the Code, the amount of total loss brought forward (including unabsorbed depreciation) shall be allowed to be reduced from the book profit for the purposes of levy of MAT under Section 115JB of the Act.
The proposed amendments will be effective from AY 2018-19 onwards and appropriate legislative amendment in this regard will be made in due course.
