What is Section 115JB of Income-tax Act?
As per section 115JB, every taxpayer being a company is liable to pay MAT, if the Income- tax(including surcharge and cess) payable on the total income, computed as per the provisions of the Income-tax Act in respect of any year is less than 15% of its book-profit + surcharge (SC) + health & education cess.
Are you liable to report under 115JB?
Ans. Every Company where the income is less than 15% of the book profit (with effect from AY 2020-21) is required to obtain a report from a Chartered Accountant in Form 29B.
What is Section 115JB 2C?
Section 115JB(2C) – Adjustment in Book Profits [Inserted by FA, 2017. w.e.f. 1-4-2017] For a company referred to in sub-section (2A), the book profit of the year of convergence and each of the following four previous years, shall be further increased …..
What is Section 115JB 2A?
Section 115JB(2A) – Computation of book profits for a company whose financial statements are prepared in accordance to Indian Accounting Standards [Inserted by FA, 2017, w.e.f. 1-4-2017].
When was section 115JB introduced?
Introduction 2) Act, 1996, wef 1-4-1997.
How is 115JB mat calculated?
MAT is calculated at 15% of the book profit as per Section 115JB of Income Tax Act, 1961.
Is form 29B compulsory?
Is it compulsory to file Form 29B? Every Company where the income is less than 15% of the book profit (with effect from AY 2020-21) is required to obtain a report from a Chartered Accountant in Form 29B.
What is 115JB 2B?
Provisions from Bare Act: Sub section 2A, 2B and 2C of section 115JB highlight the extra exercise to be undertaken by an Ind AS Compliant Company while calculating its book profits for the purpose of MAT.
What is MAT credit with example?
When MAT for a company is greater than its normal tax liability, the difference between the MAT and normal tax liability is called MAT Credit. For example: Tax liability of a company for FY 2019-20 under normal provisions of the Income Tax Act is Rs. 8 lakh while the liability as per the provisions of MAT is Rs.
What if 29B is not filed?
As per the mandate of section 92E, the assessee had to obtain the Audit Report and file it before the due date for filing return. Section 271BA provides for a penalty of ` 1,00,000 for failure to follow the mandate of section 92E.
Who files a 29B?
Every Company where the income is less than 15% of the book profit (with effect from AY 2020-21) is required to obtain a report from a Chartered Accountant in Form 29B.
Can we file 29B after due date?
This form can be filed in both online and offline mode. Form 29B should be filed 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).