Taxmann Guide to Minimum Alternate Tax and Alternate Minimum Tax

Taxmann Guide to Minimum Alternate Tax and Alternate Minimum Tax Description

This book provides a comprehensive analysis of Minimum Alternate Tax (MAT) & Alternate Minimum Tax (AMT).

The Present Publication is the 2^nd Edition (2022) authored by Taxmann’s Editorial Board. The law stated in this book is amended by the Finance Act 2022, with the following noteworthy features:

• [Discussions on Liability/Exemption to/from MAT] is included in this book
• [Discussions on Liability to Pay AMT] is included in this book
• [Computation of Profit & MAT] is discussed in light of the following:
  • Income-tax Act 1961
  • Income-tax Rules 1962
  • Relevant Case Laws
• [Clause-wise Analysis of Audit Report in Form 29B] is discussed in this book
• [Clause-wise Analysis of Audit Report in Form 29C] is discussed in this book

The detailed contents of the book are as follows:

• Introduction
• Who is liable to pay MAT
• Book Profits
• Net profit as per profit and loss account
• Income-tax paid/payable/provision for income-tax
• Amounts carried to reserves
• Provisions for unascertained liabilities
• Provisions for losses of subsidiary companies
• Dividends paid or proposed
• Expenditures related to tax-free incomes
• Expenditures relatable to the share of income in AOP/BOI
• Expenditures relatable to income of foreign company taxable at less than MAT rate
• Notional loss of sponsors of REITs and InvITs on the exchange of shares in SPV for units of REIT/InvIT or due to change in the value of units or loss on the transfer of units
• Expenditures relatable to royalty income in respect of patents taxable under Section 115BBF
• Amount of depreciation
• Amount of deferred tax and provision thereof
• Amount or amounts set aside  as provision for diminution in the value of any asset
• Revaluation reserve in respect of assets retired/disposed of
• Gain to the sponsor of REIT/InvIT on the transfer of units
• Withdrawals from reserves or provisions
• Tax-free income under Section 10/11/12
• Share of income from AOP/BOI of which the company is a member
• Income of foreign company taxable at less than MAT rate
• Notional gain on the exchange of shares of SPV for units of REIT/InvIT & actual gain from transfer of such units
• Loss to the sponsor of REIT/InvIT on the transfer of units
• Royalty income of patentee – Company taxable under Section 115BBF @ 10%
• Unabsorbed depreciation and loss bought forward in case of a company whose board of directors has been suspended by NCLT
• Loss bought forward (excluding unabsorbed depreciation) and unabsorbed depreciation in case of a company whose CIRP application has been admitted under the Insolvency and Bankruptcy Code
• Loss bought forward or unabsorbed depreciation
• Profits of a sick industrial company
• Amount of deferred tax credited to profit & loss account
• Adjustments to book profit required in case in Ind AS companies
• Computation of book profit of the ‘resulting company’ in case of a demerger
• MAT credit
• Applicability of audit under section 115JB
• Audit Report: Para 1 of Form No. 29B
• Audit Report: Para 2 of Form No. 29B
• Audit Report: Para 3 of Form No. 29B
• Audit Report: Annexure to Form No. 29B

Taxmann Guide to Minimum Alternate Tax and Alternate Minimum Tax