Net Profit Calculator (Section 198)

Net Profit as per Section 198 of the Companies Act is used to calculate limits for managerial remuneration and CSR expenditure (2% of average net profits).

Net Profit before Tax (₹)

Deductions (subtract from profit)

Provision for Doubtful Debts

Loss on Sale of Fixed Assets / Undertaking (Net)

Charity & Donations

Miscellaneous Expenses

Fixed Assets Written Off

Amortization of Lease Hold Land Premium

Newsprint Claim Written Off

Amalgamation Expenses Written Off

Discount on Commercial Papers

Fair Value Changes in Assets / Liabilities (Deductible)

Voluntary Compensation & Damages Paid

Other Deductible Expenses

Additions (add back to profit)

Profit on Share Issue Premium

Profit on Forfeited Shares Sale

Capital Nature Profits / Undertaking Sale

Immovable Property / Fixed Assets Sale Profit

Fair Value Changes in Assets / Liabilities (Addition)

Net Profit u/s 198

Total Deductions

Total Additions

Net Profit (₹)

Max Managerial Remuneration (11%)

CSR Obligation (2%)