06 October 2017
Form 29B is to be prepared only when there is profit as per MAT. It may happen that the Company is having losses but when we compute the book profit as per MAT then there comes out a tax liabiltiy. Book Profit is calculated by adding the following in the Net Profit of the Co. : (i) The amount transferred to Reserve (ii)Provision of losses of subsidiary companies (iii)Dividend paid or proposed (iv)provision for diminution in value of asset (v)unascertained liabilities (vi) income tax paid or payable, (v)expenditure relateable to section 10,11 or 12, (vi) Depreciation (vii) Deferred taxes and its provisions. The following items shall be deducted from Net Profit : (i) Expenses relateable to share of income from AOI/BOI on which no tax is payable (ii) income relateable to capital gains from transaction on securities, interest, royalty or Foreign transactions on which separate rate is applicable (lower than MAT) (iii) amount representing notional income of transfer of capital asset being share to business trust in exchange of units , income on transfer of units (iv)Net loss on transfer of units
CAclubindia
