The Central Government today notified the revised From No. 29B for computation of the book profits of the company the purpose of Minimum Alternate Tax (MAT) covered under section 115JB of the Income Tax Act.
Section 115JB speaks about the Minimum Tax that a company is required to pay. It provides that in case the tax payable by a company is less than 18.5 % of its books profit in any assessment year beginning from 01.04.2012, then such book profit will be assumed to be the income of the company and tax payable by the company during that financial year will be 18.5 % of such book profit. This is provided u/s 115JB(1). In subsection (1) to section 115JB, the word ‘Company’ is used which means that section 115JB is applicable in case of Company whether resident or a foreign company.
The Notification also provides the details relating to the computation of Book Profits for the purposes of section 115JB, the amount required to be increased or decreased in accordance with sub-section (2A) of section 115JB and the amount required to be increased or decreased in accordance with sub-section (2C) of section 115JB.
Read the Full Text of the Notification Below
