Under the existing provisions of section 115JB of the Income Tax Act, a company is required to pay a Minimum Alternate Tax (MAT) on its book profit, if the income-tax payable on the total income, as computed under the Act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 2010, is less than such minimum. The amount of tax paid under section 115JB is allowed to be carried forward and set off against tax payable upto the tenth assessment year immediately succeeding the assessment year in which tax credit becomes allowable under the provisions of section 115JAA.

It is proposed to amend sub-section (1) of section 115JB to increase the MAT rate to eighteen per cent from the existing fifteen per cent.

This amendment is proposed to take effect from 1st April, 2011 and will, accordingly, apply in relation to the assessment year 2011-12 and subsequent years.

More Under Income Tax

Posted Under

0 responses to “Budget 2010 – Minimum Alternate Tax (MAT) Rate increased to 18%”

  1. deepjyoti biswas says:

    its 18.54 %

  2. aman says:

    concept of mat. how calculated.

  3. tikam1984 says:

    how can we calculate of depreciation in compnies

  4. tikam1984 says:

    how can we calculate of MAT for compnies
    nad how can we adjuste amount of deffered liabilities

  5. SRIDHAR KUMAR says:

    F.y 2011 the Minimum alternate tax is 18% P.A

  6. Akshat says:

    Ya if amt exceeds 1 crore then surcharge will be applicable…

  7. MAHIPAL JAIN says:

    if total income of company above Rs.1 crore, but book profits exceed Rs.1 crore… will surcharge applicable on minimum alternate tax u/s 115JB.

  8. Ajay says:

    For company is engaged in agriculture business whether MAT is applicable for loss.

  9. anshumaan says:

    if total income of company does not exceed Rs.1 crore, but book profits exceed Rs.1 crore… will surcharge applicable on minimum alternate tax u/s 115JB.

  10. Anil Jain says:


    Can Carry forward losses be adjusted with Mat Book Profit purpose.

    Anil Jain

  11. CA Anupam Goel says:

    MAT Rate for A/Yr 2010-11 is 15%.

  12. Ranjeet says:

    1> If there is breach of contract an co. receives penalty amt from other party. How such amt received vl get effect in books of accounts.

    2> If under a contract of packing good are sent to contracting party and due to mishandling or negligence goods are damage/deteriorated.Now damages /penalty amt so paid how vl co. effect this transaction and what vl be the entry.

  13. bharat says:

    TDS is applicable for following transaction ?

    1 ) Payment(in foreign currency) made to foreigners( i.e. company not having branch in india) for exhibition held in forein Rs. 70000/-

  14. bharat says:

    new mat rate is 18 % appliceble from a.y. 2011-12(f.y. 2010-11)

  15. Shipra says:

    Is new rate of MAT applied from the F.Y 2010-2011?

  16. Rajesh Sharma says:

    what is the rate of tax UNDER MAT for A.Y.2010-11

Leave a Reply

Your email address will not be published. Required fields are marked *