Received CPC Intimation Asking to File Form 29B? Here is What to Do

Several companies have recently received system-generated intimations from the Income Tax Department’s Central Processing Centre (CPC) asking them to submit Form 29B. In the message, the taxpayers have been warned that if they do not submit this form, their deductions will be disallowed.

If you have also received such intimation from CPC, then there is no need to panic. The message may sound serious, but it does not always mean that there is a mistake in your return. Let us understand what you should do.

In most cases, these intimations are sent by the automated processing system. The system often flags Form 29B as missing without checking if the Minimum Alternate Tax (MAT) provisions were applicable to the company for that year.

Form 29B is required only when a company is liable to pay tax under section 115JB of the Income Tax Act. It is a mandatory report used by the company to disclose its “book profits” for determining MAT Liability. If the tax payable under the normal provision is higher than the MAT liability, MAT does not apply, and filing Form 29B is not mandatory. In that case, even if the taxpayers do not file Form 29B, it does not mean they have violated the provisions of Section 115JB(4) of the Income Tax Act.

If you get such intimation, make sure you reply to it within the specified time. In your response, clarify that Form No. 29B under Section 115JB(4) was not mandatory to be filed because the tax liability under the normal provision was more than the MAT liability.

Once this response is submitted along with the supported explanation, the CPC usually drops the proposed adjustments without any further penalty or consequences. If the issue is still not solved, you can opt for the reprocessing of your ITR.