Form 29B is the essential document for companies that fall under 115JB of the income tax act. It helps them to calculate correct book profit and claim the Minimum Alternate Tax (MAT) credit Incurred from the computation of the tax as per the Income Tax Act. Form 29B must be filed by the chartered accountant appointed by the company.
What is Minimum Alternate Tax (MAT)?
Minimum Alternate Tax (MAT) is a provision in the Indian tax system aimed at ensuring that companies pay a minimum level of tax, even if they are eligible for certain tax exemptions or incentives that reduce their taxable income significantly. It encourages companies to maintain transparency and fairness in reporting their profits and tax liabilities.
MAT aims to ensure these “Zero Tax Companies” pay higher taxes as they have high book profits but lower taxable income due to different tax advantages and incentives under the Income Tax Act.
All companies where the income is less than 15% of the book profit (effective from Assessment Year 2020-21) are required to file Form 29B.
This means the company’s book profit must be more than 6.67 times its taxable income to be exempt from filing. This report should be obtained and submitted one month before the due date for filing of return u/s 139(1) or along with the return of income furnished in response to a notice under Section 142(1)(i).
Form 29B should be prepared and filed by the chartered accountant of the company and registered on the e-filing portal with a valid Signature Certificate (DSC)
The form should be filed in the prescribed format and within the due date per the Income Tax Act, 1961. The form should be filed electronically before and with the company's income return.
The form should contain the company's details, such as name, address, PAN number, assessment year, etc. It should also mention the book profit amount and the MAT amount of the company as per Section 115JB.
The company should appoint a CA from My CA service who can provide an audit report in Form 29B as per the Income Tax Act. However, the CA may not accept the request for an audit report in some cases, but if accepted, he has to file Form 29B on behalf of the company.
- Visit the Income Tax's official site and enter your User ID and Password to log in.
- Select E-file > Income Tax Forms > File Income Tax Forms on the Dashboard.
- Choose Form 29B from the form tiles. This form is used to certify the book profits of your company as per Section 115JB of the Income Tax Act.
- Assign a CA using My CA service if you have not done so already. The CA should have a valid DSC registered on the e-Filing portal.
- Enter the Assessment Year and attach the necessary documents. Click Continue to submit the form to the CA.
- You will be receiving a success message with a Transaction ID. You should note down the Transaction ID for future reference.
Penalties for Non-filing of Form 29B
Section 271BA imposes a penalty for not filing Form 29B before the deadline, along with the audit report as required by Section 92E. The penalty amount can be up to Rs 1,00,000, depending on the case may be. Section 273B provides relief from penalty if you have a valid reason for the delay in filing Form 29B.
Form 29B PDF
You can download Form 29B in PDF format from the official Income Tax India website. This form consists of three parts and an audit report: Part A, Part B, and Part C. While Part A applies to all business organizations in India, the applicability of Parts B and C is contingent on specific conditions.
Breakdown of Form 29B (Income Tax Act):
- Part A: This section provides general details about the book profits of a company.
- Part B: Contains details regarding the amounts that must be increased or decreased in accordance with sub-section (2A) of Section 115JB.
- Part C: Furnishes information on the amounts that need to be adjusted as per sub-section (2C) of the same section.
Download Form 29B
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