Corporate TaxArticle·22 April 2026
MAT Inapplicable to Banks
By J the App
Executive Summary
MAT (Section 115JB): Held not applicable to nationalised banks constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.
Leave Encashment: Deduction allowed only on payment basis under Section 43B(f).
Section 14A: Deletion upheld; no disallowance warranted where own funds exceed investments.
TDS Issues:
o Short deduction: No disallowance u/s 40(a)(ia).
o Payments to VISA (non-resident): Not taxable in India , no TDS obligation no disallowance.
Issues for Determination
1. Whether Section 115JB (MAT) applies to nationalised banks not in...
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