Form 29B Filing Process via Genius Tax Filing Software

What is Form 29B?

Section 115JB of the Income Tax Act mentioned that Form 29B is significant to evaluate the book profits of the company. Through this form, you are enable to compute the book profit to claim the Minimum Alternate Tax (MAT) credit. The same form is required to be provided via the Chartered Accountant if your company is counted under section 115JB.

You as an owner of the business are required to calculate the MAT and tax obligation and file both under tax provisions. Also, you are needed to file the MAT amount without losing it if your ordinary tax amount is lesser compared to the MAT. This is due to the income tax law citing that a company is required to file a higher tax compared to the other two. But the Form 29B MAT amount depends on the book profit of your company as declared in Form 29B.

Form 29B Applicability

Every company where the income is lower than 15% of the book profit is needed to get a report from a Chartered Accountant in Form 29B. The same report must be received and submitted within 1 month before the deadline for filing the income tax return u/s 139(1) or including the income return provided in answer to a notice under section 142(1)(i).

To comprehend the Form 29B applicability the company owners must watch the below-mentioned points-

Companies while submitting Form 29B, should comply with the government-approved format to bypass any mistake that can draw penalties.
Both the CA and taxpayer must have access to the e-filing portal via their respective IDs and passwords. Also, the appointed CA must secure a valid Digital Signature Certificate (DSC), which is to be registered on the IT e-filing portal.
As the owner of the company, you are required to get a certificate via an authorized Chartered Accountant (CA) for Form 29B. It is needed to validate the estimated book profits under the Income Tax Act of 1961.
As an owner of the company, you must hire a chartered accountant from My CA service. The CA appointed will furnish you with an audit report via Form 29B under the Income Tax Act. However, the CA appointed might not accept your request for an audit report every time, though it is accepted, he is required to file Form 29B.
Don’t forget to enter the information like your name. address, company PAN number, assessment year, etc., while filing Form 29B. You ought to cite the book profit amount of your company while filing this form.

Form 29B Filing Deadline

Every company should report its book profits for a particular assessment year in Form 29B, as per Section 115JB of the Income Tax Act of 1961. But your report should be certified via a CA. You could file this form both online and offline at your ease.

The deadline for Form 29B is laid on the notice you get under section 142(1). Also, you could submit the form with the return of income one month before the filing of the return due date as mentioned u/s 139(1).

What is the Tax Penalty If I Forget to E-file Form 29B?

As per Section 271BA, if you are unable to get the audit report and file Form 29B before the deadline then you shall be obligated to pay a hefty penalty. The late filing penalty of Form 29B can exceed Rs 1,00,000 in some cases.

But Section 273B cited that if you mention the effective cause of failing to submit the form on the deadline then you are not obligated for any penalty u/s 271BA.