Deemed Income

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TARIQUE RIZVI (Querist)
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03 March 2021 Ay 20-21 Deemed Total Income under section 115-JB ( 9 of schedule Mat ) is reflected in ITR-6 as Rs 27,69,196 which has been carried forward from Profit Loss sheet ( Balance carried to balance sheet ). Actually nothing should be reflected as deemed income in schedule of Total Income. What to do in such case? Please guide me and oblige.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 October 2021 MAT or Minimum Alternate Tax is a provision in Direct tax laws to limit tax exemptions availed by companies, so that they mandatorily pay a minimum amount of tax to the government. As per Section 115JB, all companies are required to pay corporate tax at least equal to the higher of the following:

Normal Tax Liability: Calculated as per the normal provisions of the Income Tax Act, i.e. by applying the relevant tax rate to the taxable income of the company. Please note that the Ministry of Finance has revised the corporate tax rates in September, 2019. Click here to know the revised rates.
Minimum Alternate Tax (MAT): For FY 2019-20, tax payable is computed at 15% (previously 18.5%) on book profit plus applicable cess and surcharge.

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