Lok Sabha Question No. 3342 (UNSTARRED), answered on 2019-12-09
Subject: Tax on Loss-Making Companies
Ministry: FINANCE
Asked by: H. Vasanthakumar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 3342

TO BE ANSWERED ON MONDAY 9 TH  DECEMBER, 2019 AGRAHAYANA 18, 1941 (SAKA)

## TAX ON LOSS-MAKING COMPANIES

## 3342. SHRI VASANTHAKUMAR H:

Will the Minister of FINANCE be pleased to state:

- (a)   whether the Government is likely to propose a minimum amount of tax on loss-making companies and if so, the details thereof;
- (b)   whether some companies are still out of MAT ambit as loss-making entities and if so, the details thereof;
- (c)   whether the Government is trying to bring them under the tax net now;
- (d)  if so, the details thereof along with the list of loss-making companies across the country during the last three years; and
- (e)  whether the Government mechanism has verified and declared that they are really loss making companies including e-Commerce companies and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a)   No Sir. Presently there is no such proposal under consideration.
- (b)  Yes Sir. There are companies which are out of ambit of Minimum Alternate Tax (MAT) as their deemed total income under section 115JB of the Income-tax Act 1961, (the Act) is Zero.
- (c)   No Sir. Presently there is no such proposal under consideration.
- (d)    The  summary  on  Companies  having  zero  total  income  and  also  zero  deemed  total-income  computed  u/s 115JB  of the Act for last three Assessment Years is as under :
- (e)   The information furnished in (d) is collected from the Annual Income Tax Returns filed by the companies during the last three years.

|    |                 |         | Number of Companies where Total-Income after deduction is zero   | Out of (c ), number of Companies where "Deemed total income under section 115JB" in Schedule MATis zero.   |
|----|-----------------|---------|------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
|    | (a)             | (b)     | ( c)                                                             | (d)                                                                                                        |
| SR | Assessment Year | FORM_ID | ZERO_INCOME_ COMPANIES                                           | ZERO_DEEMED TOTAL INCOME_115JB                                                                             |
| 1  | 2016-17         | ITR-6   | 424,168                                                          | 375,014                                                                                                    |
| 2  | 2017-18         | ITR-6   | 436,320                                                          | 384,317                                                                                                    |
| 3  | 2018-19         | ITR-6   | 469,411                                                          | 416,101                                                                                                    |

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