ITR-6 AY 2026–27 MAT Working: Schedule MAT Rows, Book Losses, Form 29B and the Lower-Regime Exclusion

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Direct answer

For AY 2026–27, compute section 115JB MAT only after deciding whether it applies to the company. A valid section 115BAA or 115BAB option excludes section 115JB under sub-section (5A). Where MAT applies, its book-profit base is separate from ordinary taxable income. A tax loss in Schedule BP does not necessarily mean nil MAT, and the BP disallowance list is not a ready-made list of MAT additions. CBDT Notification 49/2026: AY 2026–27 Schedule MAT and Part B-TTI.

Period and applicable rates

This article covers FY 2025–26 under the 1961 Act, using the notified AY 2026–27 form and validations checked on 27 October 2026. Schedule MAT row 10 applies 15% to the stated other-unit base and 9% to a qualifying IFSC base, with applicable surcharge and cess addressed separately in Part B-TTI. Do not substitute a later tax-year MAT rate or new-Act form merely because the return is filed after 1 April 2026. The numerical models exclude IFSC, foreign-company and life-insurance exceptions unless expressly identified.

Start with the correct profit and prepare a separate bridge

Schedule MAT row 4 starts with profit after tax from the specified Part A-P&L field, not BP A38 and not the normal-computation total income. Review each statutory addition and deduction under Explanation 1 to section 115JB. The form combines income-tax and deferred-tax provisions in row 5a, places unascertained liability provisions in 5c, and includes the specified residual items in 5m. A provision is not added merely because its account name contains provision; establish whether the statutory condition is met.

Depreciation and book-loss differences matter

The notified form’s row 5k captures depreciation attributable to revaluation. Do not add all ordinary book depreciation again in that field: the statutory add-back/deduction mechanism leaves the relevant net adjustment, whereas Schedule BP separately replaces book depreciation with tax depreciation. Row 6i addresses the permitted book loss/unabsorbed depreciation reduction. For an ordinary company outside the special aggregate-relief cases, compare loss excluding depreciation with unabsorbed depreciation as per books and use the lower amount; if either is nil, the ordinary clause does not yield a deduction. This is not the tax CFL-versus-UD comparison.

Special cases and Ind AS require separate evidence

The special relief for the companies covered by Explanation 1 clause (iih), including the specified admitted insolvency cases, differs from the ordinary lower-of rule; do not claim it merely because a company is distressed. Ind AS companies must also review section 115JB(2A)–(2C) and the relevant Schedule MAT row 8 adjustments. One-fifth transition amounts and particular OCI/disposal adjustments require their own history. A current book-profit template that ignores those facts can be wrong even if every subtotal adds correctly.

Exact route through the form

Row 5n totals additions and 6l totals deductions. Row 7 equals row 4 plus 5n less 6l. Row 9 adds the applicable Ind AS net adjustments to arrive at deemed total income; rows 9a and 9b distinguish the qualifying IFSC and other-unit amounts. Row 10 calculates MAT before applicable surcharge/cess. Part B-TI row 18 takes deemed total income, and Part B-TTI row 1 begins the MAT tax calculation. Normal tax is separately calculated there before the comparison. Complete MATC under section 115JAA from its own evidence; this article does not treat a MAT payment as an ordinary loss or a TDS credit.

Form 29B must agree with the return

Section 115JB(4) requires the prescribed accountant’s report before the specified date referred to in section 44AB, with the stated notice-return qualification. The official manual identifies Form 29B, CA assignment and taxpayer acceptance/verification. Review applicability and the actual due-date category; Circular 07/2026 extends the covered specified audit date to 21 October 2026, not the same day as the extended ITR date. A saved draft or CA submission awaiting acceptance is not the full filing evidence. The AY validation Category D includes a comparison of MAT row 9 to the Form 29B book-profit figure and flags cases where MAT exceeds normal tax but the form is not filed.

Illustration assumptions

Each tax model below is a domestic company with total income below ₹1 crore. Examples one to five assume no surcharge; example six applies the flat 10% surcharge for a company validly under section 115BAA. All models assume no special-rate income, no foreign relief, no available MAT-credit set-off and no interest or fees. Normal tax at 25% is used only where explicitly assumed eligible. MAT and normal tax both include 4% cess for the comparison. Examples one to five assume MAT applies; example six assumes a valid section 115BAA option with all its conditions met. The book-loss balances are independently verified and outside the special aggregate-relief cases.

Applicable primary references

CBDT Notification 49/2026: AY 2026–27 Schedule MAT and Part B-TTI Income-tax Act, 1961 as amended by Finance Act, 2026: section 115JB and corporate regimes Official AY 2026–27 validation rules: MAT calculations and Category D Form 29B checks Official Form 29B preparation, filing and acceptance manual CBDT Circular 07/2026: specified audit date for the covered category Income Tax Department: AY 2026–27 domestic-company rates, surcharge and cess

Six worked illustrations

All facts and amounts below are fictional. Assumptions describe the model, not additional statutory rules.

Illustrative example 1: PAT-to-book-profit bridge

PAT is ₹20,00,000. Debited current income-tax provision is ₹2,00,000, deferred-tax provision ₹50,000 and a provision established as an unascertained liability ₹80,000. The ordinary eligible book-loss deduction is ₹1,00,000. MAT book profit is ₹22,30,000. Tax at 15% is ₹3,34,500; cess ₹13,380; total ₹3,47,880. Put the supported items in 5a, 5c and 6i, with no extra ordinary-depreciation add-back.

Illustrative example 2: Use book balances, not tax carry-forwards

Before the eligible loss reduction, book profit is ₹30,00,000. Books show loss excluding depreciation ₹4,00,000 and unabsorbed depreciation ₹6,00,000. The ordinary row 6i deduction is ₹4,00,000, leaving ₹26,00,000. MAT is ₹3,90,000 plus cess ₹15,600 = ₹4,05,600. A larger tax loss in CFL would not replace this book-based comparison.

Illustrative example 3: Nil book loss means no ordinary lower-of reduction

Before row 6i, book profit is ₹10,00,000. Book loss excluding depreciation is nil and book unabsorbed depreciation ₹5,00,000. The ordinary deduction is ₹0, leaving ₹10,00,000. MAT is ₹1,50,000 plus cess ₹6,000 = ₹1,56,000. Do not deduct the ₹5,00,000 just because it is the only positive balance.

Illustrative example 4: Revaluation depreciation needs the right field

PAT is ₹18,00,000 after total depreciation ₹4,00,000, comprising ordinary depreciation ₹3,00,000 and revaluation-related depreciation ₹1,00,000. Assume no other MAT adjustment. Row 5k adds ₹1,00,000, giving book profit ₹19,00,000. MAT is ₹2,85,000 plus cess ₹11,400 = ₹2,96,400. Adding all ₹4,00,000 without the matching statutory treatment would overstate the base.

Illustrative example 5: Normal tax can remain higher

Assume eligible normal total income ₹50,00,000 taxed at 25% and final MAT book profit ₹40,00,000. Normal tax plus cess is ₹12,50,000 + ₹50,000 = ₹13,00,000. MAT plus cess is ₹6,00,000 + ₹24,000 = ₹6,24,000. Normal tax is higher by ₹6,76,000. The company still needs the appropriate applicability/report review; the difference is not a carry-forward loss.

Illustrative example 6: Valid lower-regime option excludes MAT

Assume a company validly under section 115BAA has ordinary taxable income ₹20,00,000 and accounting book profit ₹60,00,000. Normal tax is ₹4,40,000, flat 10% surcharge ₹44,000, and 4% cess on ₹4,84,000 is ₹19,360, total ₹5,03,360. Section 115JB(5A) excludes MAT in this case. Do not raise tax merely by comparing the ₹60,00,000 book profit to a mechanically computed MAT figure.

Ten-step verification table

Step	Action	Evidence
1	Confirm the governing year and MAT scope	AY 2026–27, company facts and statutory exclusions.
2	Verify option evidence	Valid section 115BAA/115BAB status where claimed.
3	Tie PAT to the return accounts	Schedule MAT 4 and the specified Part A-P&L field.
4	Test each statutory adjustment	Explanation 1 assessment and rows 5/6 mapping.
5	Reconcile book-loss balances	Loss excluding depreciation, UD and special-case applicability.
6	Review depreciation and Ind AS adjustments	Revaluation split and section 115JB(2A)–(2C) history.
7	Recalculate rows 7, 9 and 10	Book-profit formulas, unit split and applicable rate.
8	Reconcile Form 29B and timing	CA filing, company acceptance, acknowledgement and specified date.
9	Complete Part B-TTI and MATC review	Normal/MAT comparison, surcharge/cess and separate credit evidence.
10	Preserve the final audit trail	Return/report match, supporting books and resolved validation differences.

Sixteen practitioner FAQs

1. Is a normal tax loss proof of nil MAT?

No. The book-profit base and normal tax computation differ; review applicability and both bridges.

2. Does every corporate lower rate switch MAT off?

Identify the exact section. Section 115JB(5A) names valid 115BAA/115BAB options; do not infer an exclusion from any lower percentage.

3. Does AY 2026–27 use a later new-Act MAT rate?

Apply the period-specific 1961 Act computation and notified form used here.

4. What is the starting MAT profit?

PAT from the specified return P&L field in row 4, not normal BP income or total income.

5. Are all BP disallowances MAT additions?

MAT requires its own statutory basis. A normal-computation addition cannot be copied automatically.

6. Where does the form collect current and deferred tax provisions?

Row 5a combines the stated debited income-tax and deferred-tax amounts.

7. Is every liability provision unascertained?

Examine the actual obligation and statutory treatment; the account label alone is insufficient.

8. Should all ordinary depreciation be added in row 5k?

That field concerns revaluation-attributable depreciation. Follow the form and statutory mechanism rather than duplicating the BP adjustment.

9. Are tax losses used for the ordinary MAT loss deduction?

The ordinary comparison uses the specified balances as per books, not CFL and UD tax balances.

10. What if one book balance is nil?

The ordinary lower-of clause does not give a deduction in that case, subject to any genuinely applicable special provision.

11. Does financial distress alone permit aggregate loss relief?

Check the exact special statutory category and its evidence, including the required admission/order facts where applicable.

12. Do Ind AS companies stop at row 7?

Review the applicable row 8 adjustments and carry the resulting figure into row 9.

13. Is Form 29B merely a return attachment?

The official filing workflow involves its prescribed report, CA submission and taxpayer acceptance/verification evidence.

14. Does the extended ITR date automatically become the report date?

Keep the specified report date separate; the covered circular states 21 October and 21 November respectively.

15. Can MATC be entered as a loss or ordinary tax-payment challan?

It is a distinct statutory credit schedule requiring its own opening and utilisation evidence.

16. What is the strongest final reconciliation?

PAT-to-MAT bridge, Form 29B book profit, Schedule MAT row 9 and the Part B-TTI comparison should agree on the same supported facts.

Conclusion

Prepare the AY 2026–27 Schedule MAT bridge independently of Schedule BP, reconcile book losses and Form 29B, and check the section 115BAA/115BAB exclusion.