The Central Board of Direct Taxes vide Notification No. 92/2021 dated August 10, 2021 has inserted Rule 10RB in the Income Tax Rules, 1962 to provide relief in Minimum Alternate Tax (“MAT”) payable due to increase in book profit of previous year on account of adjustment in income of past year or years due to Section 92CC (“advance pricing agreement”) or Section 92CE (“secondary adjustment”).
Rule 10RB provides that, tax payable by Assessee shall be reduced by the following amount, namely:-
(A-B) – (D-C), where,
A = tax payable by the Assessee company under sub-section (1) of section 115JB on the book profit of the previous year including the past income;
B = tax payable by the Assessee company under sub-section (1) of section 115JB on the book profit of the previous year after reducing the book profit with the past income;
C = Aggregate of tax payable by the Assessee company under sub-section (1) of section 115JB on the book profit of those past year or years to which the past income belongs;
D = Aggregate of tax payable by the Assessee company under sub-section (1) of section 115JB on the book profit of past year or years, referred to in item C, after increasing the book profit with the relevant past income of such year or years:
Provided that if the value of (A-B)-(D-C) in the formula is negative, its value shall be deemed to be zero.
Further, for relief Assessee company shall file newly inserted Form No. 3CEEA electronically by uploading signed printout of said Form in the manner specified by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be. Form No.3CEEA shall be verified by the person who is authorized to verify the return of income.
The Notification can be accessed at: https://www.incometaxindia.gov.in/communications/notification/notification_92_2021.pdf