Mat Return (form 29b) filling process with DSC

Mat Return (form 29b) filling process with DSC

A company is liable to pay tax on income computed in accordance with the provisions of the IT Act, but the profit and loss account of the company is prepared as per the provisions outlined under the Companies Act, 2013 (replacing the former Companies Act, 1956).

Since the IT Act permits a large number of exemptions, deductions, and other tax incentives to business in India, some companies – despite having high book profits (profits made but not realized through a transaction, for instance, a stock or a property that has risen in value but is still being held by the investor) under the Companies Act – are able to reduce their taxable income to zero. Such companies are called zero-tax companies.

To bring such ‘zero-tax’ under the tax net, the Indian government re-introduced the concept of Minimum Alternate Tax (MAT) in 1997-98, under section 115JB of the IT Act; previously it was briefly levied between 1988 and 1990.

As a result, all companies having book profits under the Companies Act of 2013 are liable to pay MAT at 18.5 percent.

To file MAT return (form 29 b) - please follow the steps provided below: -

  1. Add Consultant detail - The person, who signs the audit report, shall indicate the reference of his membership number/ certificate of practice number/ authority under which he is entitled to sign this report 
  2. Select Auditor detail.
  3. Prepared MAT return
  4. Submit mat return 

Consultant Details:

Step 1 -

Open the  Income Tax Auditor Software, Go to  Master  Consultant information → option given in menu bar

  • Provide the basic details: 

(1) Membership Number, 
(2) Enrollment date as CA, 
(3) Name (Surname, First Name and middle name), 
(4) Date of Birth, 
(5) PAN, 
(6) E-mail ID,
(7) Address,
(8) Save The details.

Auditor Details:

Step 2-

Now Go to  Transactions Auditor Information option given in menu bar

  • Now Select “Other Audit Report Detail”

  • Enter Auditor Information.
  1. Name of the act (Income-tax Act, 1961)
  2. Section (115JB)
  3. Date of Report 
  4. Name of the Auditor Firm (Individual/ Firm as the case may be).
  5. Date of Audit Report.
  6. Name, and Membership Number of the Auditor.

MAT Return Preparation: 

Step 3 -

Now Go to Transactions →  Mat /AMT 

  • Press “F4” Key to input Addition and deduction detail 
  • User can import Provision for current tax and Deferred tax value through the P & L account

Note – If deferred tax value is in negative in P&L, enter the same in deduction > others column 

If the Company is liable to prepare financial statements in compliance with IND AS then the details for PART B and PART C i.e section 2A and section 2C has to be provided. To fill the details for the same point numbers 14, 15, 16 and 17 are to be entered.
Point No 14 and point No 15 will be enabled only after selecting the company nature as IND AS and to do so 
Go to Transaction  →  Company Information    Company Nature   → " Are you liable to prepare financial statements in compliance with IND AS? 

Point No 14 and Point No 15 of MAT/AMT

Step 4- 

Now for view, the report click on “ MAT Report” Button and for filling click on “e-Filling” Button.

Select Charted Account Firm Name 
Generate signature file
And Submit return 
Note - Not need to upload xml for mat , user can file through " Online Preparation and submission". E- filling Option

To generate signature file, select “Submit ITR / FORM Online” in DSC Management utility

Please ensure the DSC is registered with e-Filing.

Step 5:

Now click on submit button 

1. Upload Digital Signature Certificate.
2. Click ' SUBMIT'.
3. The Form is successfully submitted with an e-Filing application. No.

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