Income Tax

Company under corporate insolvency resolution process given relied under MAT

Company under corporate insolvency resolution process given relied under MAT – Total loss brought forward shall be allowed to be reduced from book profit 

Government  has granted relaxation in the provisions relating to levy of Minimum Alternate Tax (MAT) in case of companies against whom an application for corporate insolvency resolution process has been admitted under the Insolvency and Bankruptcy Code, 2016.

As per existing provisions of Sec 115JB of IT Act,1961, wrt a company, the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account shall be reduced from the book profit for levy of Minimum Alternate Tax (MAT).

Representations were received from stakeholders that companies against whom application for corporate insolvency resolution process has been admitted by Adjudicating Authority were facing hardship due to restriction in allowance of brought/forward loss.

To reduce hardship,it has been decided that wef AY 2018-19 in case of company where application for corporate insolvency resolution process has been admitted u/s 7/9/10 of IBC,amt.of total loss brought forward shall be allowed to be reduced from book profit for purposes of levy of MAT

Share

Recent Posts

  • Income Tax

Agricultural land is outside the deeming provision u/s 56(2)(x) – ITAT

Agricultural land is outside the definition of capital asset, therefore, the deeming provision u/s 56(2)(x) cannot be invoked - ITAT…

3 hours ago
  • Income Tax

NSDL latest e-TDS TCS RPU Version 1.2 for Tax Year 2026-27 – Download

NSDL latest e-TDS TCS RPU version 1.2 for Tax Year 2026-27 NSDL has revised the e-TDS TCS RPU utility for…

6 hours ago
  • Income Tax

Deprecation allowable u/s 11(6) if capital expenditure not claimed as application of income

Assessee entitled to claim deprecation u/s 11(6) if corresponding capital expenditure was not claimed as application of income - ITAT…

23 hours ago
  • Income Tax

CBDT cautions CAs issuing certificates in Form 15CB/Form146 to exercise due care & diligence

Chartered Accountants issuing certificates in Form 15CB/Form146 are expected to exercise due care, diligence and professional judgment – CBDT CBDT…

1 day ago
  • Income Tax

Section 292C carry no presumption of correctness of seized documents contents against third party

Section 292C of the Income Tax Act 1961 indeed carries presumption of correctness of such seized documents contents but only…

3 days ago
  • Income Tax

Condonation of delay u/s 119(2)(b) for filing revised return to avail benefits u/s 44ADA

PCIT directed to consider condonation of delay u/s 119(2)(b) in filing revised return to availing benefits of section 44ADA In…

3 days ago