Business Tax Statutory Framework: Section 44AB, 43B, 115BAA & MAT Rules

व्यापारिक कर कानूनी नियम एवं वैधानिक धाराएं

Comprehensive reference guide to business taxation laws under the Income Tax Act: Section 44AB tax audit parameters, Section 43B deductions on actual payment, Section 40A(3) cash ceilings, Section 115BAA 22% corporate rates, and Minimum Alternate Tax (MAT) under Section 115JB.

Written by: Author Profile

Direct Tax & CA Review Panel

Chartered Accountancy Review Panel • Senior Direct Tax Review Desk

Reviewed & Fact-Checked by: Technical Review Panel

Tax Law & Dispute Review Desk

Tax Litigation & Legal Review Panel • Tax Appeal & Procedure Review Desk

Published: 1st April 2026•Last Updated: 15th August 2026•Last Reviewed: 15th August 2026

Key Statutory Highlights (FY 2026-27 (AY 2027-28))

Section 44AB: Statutory audit thresholds (₹1 Crore for non-digital turnover / ₹10 Crore for digital >= 95%).

Section 43B: Deductions allowed only on actual payment before ITR due date (taxes, PF/ESI, bank interest, MSME payments u/s 43B(h)).

Section 115BAA: 22% base corporate tax rate without MAT applicability.

Section 115JB (MAT): 15% tax on book profits for companies not opting for Section 115BAA.

Section 79: Restrictions on carry forward of losses for closely-held companies upon change in 51% shareholding (exempt for DPIIT startups).

Who is Eligible & When Does it Apply?

Applicability #1

All corporate and commercial entities operating in India.

Step-by-Step Procedure & Compliance Roadmap

Classify Entity under Applicable Section

Verify corporate tax election (115BAA vs 115JB MAT).

Ensure Section 43B & 43B(h) Timelines

Discharge all statutory duties, employee PF, and MSME payments within prescribed limits.

Submit Tax Audit Form 3CA/3CD

File audit report electronically before 30th September.

Mandatory Documents Checklist

Audited Financials, Tax Audit Form 3CD, Form 10-IC, MSME payment ledgers

Common Mistakes & Compliance Risks to Avoid

•Claiming deduction for unpaid employee PF or GST liability under Section 43B.

Frequently Asked Questions

Can a company carry forward business losses under Section 72?

Yes, business losses (other than speculative losses) can be carried forward for up to 8 assessment years and set off against business profits, provided the ITR is filed on or before the due date under Section 139(1).

Interactive Tax Calculators

Business Tax Calculator

Related Tax Knowledge

Corporate Tax Guide

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🛡️ Educational Disclaimer: FinSetu India is an independent educational guidance and calculation platform. Content is published for general citizen awareness based on applicable laws as of FY 2026-27 (AY 2027-28). We do not provide personalized legal/tax advice or file returns directly. Verify current applicable rules on official portals or consult a qualified Chartered Accountant / Tax Lawyer.