This is a pvt company will go for strike off in next FY due to loss. It has unpaid director loan of 22L that will be waived off by directors. This director loan was used for revenue purpose hence it becomes income for company after waive off. It's found the company is having profit around 18L in FY 25-26 due to loan waiver. The company has 32L brought forward loss in ITR. The company has not adopted 115BAA in ITR filing of previous years. These are some queries I have in this regard. 1) Whether MAT will be applicable for the profit in FY 25-26? 2) Can the company adopt 115BAA while filing FY 25-26 ITR to avoid MAT? 3) What compliance be done for adopting 115BAA and what is the due date? 4) Will there be any income tax liability after adopting 115BAA in ITR of FY 25-26? Looking forward to your reply. Thank you.
MAT applicability:
Yes, MAT may apply if the company does not opt for Sec 115BAA, because MAT is based on book profit, not ITR loss.
Opt for 115BAA:
Yes, the company can opt for Sec 115BAA in FY 2025-26. After opting, MAT will not apply.
Compliance & due date:
File Form 10-IC online before the ITR due date (generally 31 Oct 2026) for AY 2026-27.
Tax liability:
If the ₹32L brought-forward business loss is eligible for set-off, the ₹18L profit will be fully adjusted → tax liability NIL.
