Section 115JB(4) of the Income Tax Act, 1961, mandates that companies liable for Minimum Alternate Tax (MAT) must submit a Chartered Accountant (CA)-certified report in Form No. 29B. This report confirms the accuracy of book profit computation for MAT. Below are the key provisions:
1. When is the Report Required?
- All companies(including foreign companies with PE in India) liable for MAT must file Form 29B.
- Exemptions:
- Companies opting for concessional tax regimes (Sections 115BAA/115BAB).
- IFSC units taxed at 9% MAT.
2. Key Requirements of Form 29B
The CA must certify:
✔ Book Profit Computation: Adjustments made as per Explanation 1 to Section 115JB(2).
✔ MAT Calculation: Verification of 15% (or 9% for IFSC) of book profit.
✔ Compliance with Companies Act: P&L is prepared as per Schedule III.
✔ Adjustments for:
- Income tax, dividends, depreciation, provisions, exempt income, etc.
- Brought forward losses/unabsorbed depreciation (if applicable).
3. Due Date for Filing
- Along with Income Tax Return (ITR):
- Normal due date: September 30(if audit not required).
- Audit cases: October 31(extendable to November 30).
4. Penalty for Non-Compliance
- Invalid MAT Claim: If Form 29B is not filed, MAT computation may be rejected by tax authorities.
- Concealment Penalty: Up to 200% of tax evaded(if discrepancies found).
5. Practical Example
Scenario: A company has:
- Net profit (P&L)= ₹2 crore
- Additions(tax, dividends) = ₹50 lakh
- Deductions(exempt income) = ₹20 lakh
- Book profit= ₹2.3 crore
- MAT @15%= ₹34.5 lakh
CA’s Role:
- Verify all adjustments.
- Certify in Form 29Bthat computation complies with Section 115JB.
