Form 29B Explained: Download & Report Under Section 115JB for Book Profit Computation of Companies

Form 29B Explained: Report Under Section 115JB for Book Profit Computation of Companies

Form 29B is a mandatory audit report under Section 115JB of the Income-tax Act, 1961. It is required to compute the "book profits" of a company for the purpose of Minimum Alternate Tax (MAT). This form must be certified by a Chartered Accountant and submitted along with the income tax return, especially when the company’s tax liability under the normal provisions of the Act is lower than the MAT liability calculated under Section 115JB.

Minimum Alternate Tax was introduced to ensure that companies with substantial profits and dividend declarations cannot avoid tax by claiming various deductions and exemptions. Form 29B ensures standardized computation of book profits and maintains transparency in corporate taxation.

What is Form 29B?

Form 29B is a statutory audit form under Section 115JB that provides a detailed computation of book profit as per the financial statements prepared under the Companies Act. It confirms whether the company has correctly calculated MAT and complies with the adjustments required under Explanation 1 to Section 115JB(2) of the Income-tax Act.

This form is certified by a Chartered Accountant and submitted electronically with the company’s income tax return using a digital signature.

Who is Required to File Form 29B?

Form 29B must be filed by:

• All domestic companies liable to pay Minimum Alternate Tax (MAT)
• Foreign companies with a permanent establishment in India, subject to MAT
• Companies whose total tax payable under normal provisions is lower than MAT liability

Filing Form 29B is mandatory for every company falling under the purview of MAT, regardless of industry type or company size.

Key Objective of Form 29B

The main objective of Form 29B is to ensure that companies compute and pay the Minimum Alternate Tax accurately. It helps tax authorities verify the book profits as calculated by the taxpayer and ensures that necessary additions and deductions have been made in accordance with the law.

How to Calculate Book Profit for MAT?

Book profit is calculated based on net profit as shown in the Profit and Loss Account prepared in accordance with the Companies Act, with certain adjustments including:

• Addition of provisions for income tax, deferred tax, reserves, etc.
• Deduction of income exempt under Section 10, depreciation differences, and specific receipts

Once the adjusted book profit is calculated, MAT is levied at 15% of that amount (plus applicable surcharge and cess).

Download Form 29B Schema

The Income Tax Department provides a downloadable schema for Form 29B, which is essential for software-based validation of electronic submissions. This ensures consistency in data format and helps e-filing platforms validate information before submission.

🔗 Form Schema (12.8 KB): Download Form Schema ZIP

📅 Date of First Release: 09-Aug-2022

📅 Date of Latest Release: 25-Mar-2025

Download Schema Change Document

The schema change document outlines version-wise updates and modifications to the Form 29B structure. This is important for tax software developers, professionals, and corporates relying on automated tools for filing tax reports.

🔗 Schema Change Document (137 KB): Download Schema Change PDF

📄 Version: 1.3

Steps to File Form 29B

1. Prepare audited financial statements as per the Companies Act.
2. Calculate net profit and adjust per Section 115JB for additions/deductions.
3. Compute book profit and calculate MAT (15% + surcharge/cess).
4. Download the latest schema and validate your data using a utility or e-filing portal.
5. Get the report certified by a Chartered Accountant (digitally signed).
6. Upload the XML file or online form on the income tax e-filing portal.

When to File Form 29B?

Form 29B should be filed before the due date of filing the income tax return for the relevant assessment year. Generally, the due date is:

• 31st October of the assessment year – for companies subject to audit

Failure to file Form 29B on time may lead to disallowance of MAT credit and penalty implications under the Income-tax Act.

Benefits of Filing Form 29B

• Ensures compliance with MAT provisions
• Allows companies to claim MAT credit in future years
• Avoids penalties and notices for under-reporting of income
• Standardizes reporting and aids in smooth tax assessments

Common Errors to Avoid

• Using outdated schema versions
• Incorrect profit adjustments under Section 115JB
• Failure to validate and digitally sign the form
• Late submission of Form 29B

Using the correct schema and version ensures that the XML file generated is successfully accepted by the e-filing system, avoiding rejection and resubmission.

Conclusion

Form 29B is an essential compliance requirement for companies under the MAT regime. It ensures that companies with book profits contribute a minimum level of tax to the government. Filing the report accurately and on time is not only a legal requirement but also helps build credibility with tax authorities and financial institutions.

With digital compliance being the norm, companies must download and use the correct Form 29B schema and schema change document provided by the Income Tax Department. Keeping your Chartered Accountant in the loop and maintaining accurate records are key to smooth, penalty-free compliance under Section 115JB.