MAT / AMT Certification — Forms 29B & 29C
Mandatory CA certification for Minimum Alternate Tax (companies, Form 29B under Section 115JB) and Alternate Minimum Tax (non-corporate entities, Form 29C under Section 115JC). Required with every tax audit. Starting ₹3,999.
Regulatory Framework
Section 115JB — Income-tax Act, 1961 (MAT for companies)
Applies to all domestic companies. Tax payable is the higher of: (a) regular income tax on total income, or (b) 15% of book profit (plus applicable surcharge and cess). Book profit is defined as net profit per profit and loss account prepared under Part II and III of Schedule VI to the Companies Act (now Schedule III), subject to specified additions and deductions in the Explanation to Section 115JB.
Section 115JC — Income-tax Act, 1961 (AMT for non-corporate entities)
Applies to individuals, HUFs, AOPs, BOIs, and artificial juridical persons who claim deductions under specified sections (80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, 80-IE, 80-RRB, 80QQB, 10AA). AMT rate: 18.5% of adjusted total income (15% for individual, HUF, AOP, BOI, AJP from AY 2024-25 — verify for current AY). Adjusted total income = total income + deductions claimed under those sections.
Section 115JD — MAT/AMT credit
Tax credit for MAT/AMT paid in excess of regular tax. Carried forward for 15 AYs and set off in any year where regular tax exceeds MAT/AMT.
Rule 40BA — Form 29B (MAT): CA's report under Section 115JB(4). Prescribed form requiring the CA to certify that book profit has been computed in accordance with the provisions of Section 115JB.
Rule 40D — Form 29C (AMT): CA's report under Section 115JC(4). Certifies adjusted total income for AMT purposes.
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ITA 2025 Concordance (in force 1 April 2026)
Section 115JB [ITA 1961] → Section 206 [ITA 2025] (Minimum Alternate Tax for companies — book profit basis retained)
Section 115JC [ITA 1961] → Alternate Minimum Tax for non-corporate entities (ITA 2025 equivalent section: verify against CBDT concordance for latest mapping)
Transition note: AY 2026-27 runs under ITA 1961 per Section 536(2). ITA 2025 sections apply to tax year 2026-27 onward.
Overview
Minimum Alternate Tax (MAT) under Section 115JB ensures that companies pay at least 15% tax on their book profit, even if they report zero taxable income after deductions, exemptions, and set-offs. Alternate Minimum Tax (AMT) under Section 115JC applies the same principle to non-corporate entities (LLPs, partnership firms, individuals, HUFs) who claim certain deductions that reduce tax below 18.5% of adjusted total income.
Both MAT and AMT require a mandatory CA certification — the company or entity cannot self-certify these computations. The certificate must be obtained before filing the return of income.
Who needs MAT certification (Form 29B):
- Every domestic company (private limited, public limited, OPC) with book profit above ₹10 lakh
- Foreign companies earning income in India and assessed under Sections 44B/44BB/44BBA/44BBB are exempt
- Companies claiming Section 10AA (SEZ) deductions — the MAT rate on SEZ income is NIL (Finance Act 2017)
- Companies under the new regime (Section 115BAA / 115BAB) are exempt from MAT
Who needs AMT certification (Form 29C):
- LLPs claiming deductions under Chapter VI-A (Part C) — Sections 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID, 80-IE
- Individuals and HUFs claiming deductions under Section 80-IA / 80-IAB / 80-RRB / 80QQB or Section 10AA
- Essentially any non-corporate entity where adjusted total income × 18.5% > normal tax liability
The MAT credit mechanism:
MAT paid in excess of regular tax in a year creates a MAT credit entitlement that can be carried forward for 15 assessment years and set off against regular tax in future years when regular tax exceeds MAT. This makes the MAT computation a long-horizon planning exercise — incorrectly computed MAT credit can result in lost carry-forward entitlement.
What this service includes:
- Book profit computation under Schedule III / AS / Ind AS adjustments as per Section 115JB Explanation
- Identification of all additions to and reductions from book profit (depreciation, provisions, prior period items, deferred tax, reserves)
- MAT credit entitlement calculation and carry-forward position
- Form 29B preparation and signing by ICAI CA with membership number
- Form 29C preparation and signing (for AMT cases)
- Coordination with the tax audit (Form 3CA/3CD or 3CB/3CD) — MAT is always alongside audit
How It Works
- 1
Share P&L account and audited financials
Provide the profit and loss account, balance sheet, and notes to accounts for the relevant financial year. If already tax-audited, share the draft 3CA/3CD as well.
You do thisSame day - 2
Book profit computation
Our CA works through every line of the P&L to identify Section 115JB Explanation adjustments — provisions, reserves, depreciation differences, prior period items, deferred tax. The book profit figure is computed and cross-checked against the audited net profit.
Harun Raaj & Associates does this2–3 business days - 3
MAT credit position review
We review carry-forward MAT credit from prior years (if any), compute the MAT credit for the current year, and update the 15-year carry-forward schedule. This affects multi-year tax planning.
Harun Raaj & Associates does this1 business day - 4
Form 29B / 29C preparation and CA sign-off
The CA prepares Form 29B (companies) or Form 29C (non-corporate) and signs it with their ICAI membership number. The form is uploaded to the income tax e-filing portal under the CA's login before the ITR is filed.
Harun Raaj & Associates does this1 business day - 5
Coordinate with ITR and tax audit
The Form 29B/29C must be filed before or with the ITR. We coordinate the audit report (3CA/3CD), MAT form, and ITR so all three are consistent and filed in the correct sequence.
Harun Raaj & Associates does this1 business day
Frequently Asked Questions
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