What is Form 29B of the Income Tax Act? Applicability & Filing

Introduction

Form 29B of the Income Tax Act is an audit report that companies covered under Section 115JB must obtain from a Chartered Accountant (CA) for the computation of book profits under the Minimum Alternate Tax (MAT) provisions. It helps verify that the company’s book profit has been calculated in accordance with the Income Tax Act, 1961. Filing Form 29B under Section 115JB is an important compliance requirement for eligible companies and is necessary to claim MAT credit, where applicable. Under the Income-tax Act, 2025, Form 29B has been renumbered as Form 66, and the corresponding provisions of Section 115JB have been incorporated under Section 206.

In this article, we explain what Form 29B of the Income Tax Act is, its applicability, the online filing process, and other important details.

What is Form 29B of the Income Tax Act?

Form 29B is a report required under Section 115JB for calculating a company’s book profits. A Chartered Accountant (CA) must certify the report for every company covered under Section 115JB. It helps companies ensure the correct computation of book profits to claim Minimum Alternate Tax (MAT) credit in accordance with the Income Tax Act.

Under the Income-tax Act, 2025, Form 29B has been renumbered as Form 66, and the corresponding provisions of Section 115JB have been incorporated under Section 206. Before moving further, let us have a quick look at the meaning of MAT.

For a complete overview of the renumbering of Income Tax forms, read our guide on the Income Tax Rules: Major Renumbering of Forms Explained.

MAT (Minimum Alternate Tax) Meaning

It is possible that a taxpayer, such as a company, earned profits during the financial year but was able to reduce its tax liability or avoid paying any tax at all by utilizing various provisions of the Income Tax Act (such as exemptions, deductions, depreciation, and so on).

The goal of MAT is to bring companies that pay little or no tax under the normal provisions despite reporting substantial book profits. These are companies that, despite earning considerable book profits and paying large dividends, do not pay any tax due to various tax discounts and incentives offered under the Income Tax Act.

Since its inception, various amendments have been made to the provisions of MAT, and it is now imposed on companies under the provisions of Section 115JB.

Purpose of Form 29B of the Income Tax Act

The company must calculate both the MAT tax and the tax that must be paid under ordinary tax provisions. In fact, A company is generally required to pay tax under the normal provisions or MAT, whichever is higher, subject to the provisions of the Income Tax Act. If the MAT amount is higher than the ordinary tax payable amount, then the company must pay the MAT amount. The MAT liability is calculated based on the book profit certified in Form 29B.

This report must be certified by the company’s Chartered Accountant. Where applicable, Form 29B forms part of the compliance requirements for claiming MAT credit under the Income Tax Act. As a result, the filing of Form 29B is required under the Income Tax Act, and it is advantageous for companies to claim MAT credit.

Applicability of Form 29B of the Income Tax Act

Companies must appoint a CA (after logging in through the My CA service) to provide an audit report in the form of Form 29B of the Income Tax Act. Following that, a registered CA must either accept or reject the request for the audit report and, if accepted, must complete and submit Form 29B.

Companies covered under Section 115JB must obtain a certificate from an authorized CA (Chartered Accountant) in Form 29B, verifying that the book profits have been computed in compliance with the Income Tax Act, 1961.

The taxpayer and the CA must have valid user IDs and passwords to access the e-Filing portal. The taxpayer’s PAN must be active, and the CA must be assigned for Form 29B under the My CA service. The CA must have a valid Digital Signature Certificate (DSC) registered on the Income Tax e-Filing portal, and it should not have expired.

Documents Required for Form 29B of the Income Tax Act Filing

• Audited financial statements
• PAN of the company
• DSC of the Chartered Accountant
• CA assignment through My CA
• Book profit computation
• Income Tax e-Filing login credentials

How to File Form 29B of the Income Tax Act Online?

• Visit the official Income Tax e-Filing website and log in to the portal using your User ID and Password.
• On the Dashboard, click e-File, then click Income Tax Forms, and select File Income Tax Forms.
• Choose Form 29B from the list of form tiles. Using the My CA service, assign a CA (if you have not already assigned one).
• Using the My CA service, select the Assessment Year and assign the CA. Click Continue after attaching the required documents.
• The form is successfully submitted to the CA. A success message, along with the Transaction ID, will be displayed. Please keep the Transaction ID for future reference.

Filing of Form by CA (Chartered Accountant)

• The CA needs to log in to the Income Tax e-Filing Portal.
• On the Dashboard, click Pending Actions, and then click Worklist.
• Once the above step is completed, click the Accept or Reject option for the filing request of Form 29B.

Important Note: If you opt to reject, you can provide an explanation for your decision.

• If the request is rejected, an email and SMS notification are sent to the taxpayer’s registered email address and mobile number detailing the reasons for the rejection.
• If you accept the request, a success message confirming your acceptance is displayed. After that, select File Form from your Worklist.
• Verify all the details and then click the Continue button.
• On the “Let’s Get Started” page, click Continue.
• Select whether Part B and Part C of Form 29B are applicable by choosing the appropriate options and then clicking Proceed.
• Complete all the required fields for the relevant parts – Part A, Part B/Part C, and Accountant Report – and then click Preview.
• Click Proceed to e-Verify on the Preview page.
• Click Yes for confirmation.
• Once you click Yes, you will be taken to the e-Verify page.
• After successful e-Verification, a success message is displayed along with a Transaction ID. A confirmation message is also sent to the taxpayer’s registered email address and mobile number, informing them that the form has been successfully submitted for their acceptance or rejection.

Expert Assistance for Form 29B under Section 115JB

Preparing and filing Form 29B of the Income Tax Act requires accurate computation of book profits under Section 115JB and certification by a Chartered Accountant. Ebizfiling assists companies throughout the filing process by reviewing financial information, coordinating with qualified CAs, and ensuring timely submission through the Income Tax e-Filing portal.

Our team helps businesses:

• Assess the applicability of Form 29B under Section 115JB.
• Compute book profits for MAT in accordance with the Income Tax Act.
• Coordinate with a Chartered Accountant for certification.
• Prepare and review Form 29B before submission.
• Assist with online filing and e-verification through the Income Tax e-Filing portal.
• Support companies in claiming MAT credit by ensuring proper compliance.

Unsure whether Form 29B applies to your company? Get expert online CA consultation from Ebizfiling to assess your MAT obligations and file with confidence.

Conclusion

Form 29B of the Income Tax Act is an important compliance requirement for companies covered under Section 115JB. Every company with applicable MAT liability must pay Minimum Alternate Tax (MAT). The amount of book profit is stated in the company’s audited report on Form 29B. However, for the purposes of tax calculation, it is assumed to represent the company’s income. In order to claim MAT credit in the following years, taxpayers must file Form 29B of the Income Tax Act.

Under the Income-tax Act, 2025, Form 29B has been renumbered as Form 66, and the corresponding provisions of Section 115JB have been incorporated under Section 206. Furthermore, Form 29B, or Form 66 under the Income tax Act, 2025, plays an important role in ensuring compliance with the applicable MAT provisions.

Frequently Asked Questions