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Minimum Alternate Tax

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Decoding MAT: Unraveling Minimum Alternate Tax Landscape in India

Income Tax : Unveiling the intricacies of Minimum Alternate Tax (MAT) in India. Understand its purpose, computation, and recent developments. N...

February 5, 2024 663 Views 0 comment Print

MAT Credit Short Notes and Presentation in Financial Statements

Income Tax : MAT credit should be accounted in books as it satisfies definition of Asset as per Framework for preparation and presentation of F...

April 30, 2023 127911 Views 10 comments Print

Minimum Alternate Tax (MAT) & Alternate Minimum Tax (AMT)

Income Tax : MAT stands for Minimum Alternate Tax and AMT stands for Alternate Minimum Tax. Initially the concept of MAT was introduced for com...

June 3, 2022 94430 Views 5 comments Print

Importance of Minimum Alternate Tax In Tackling Tax Avoidance

Company Law : MAT or minimum alternative tax refers to a tax paid to by a company in advance. We should note that companies must pay tax accordi...

February 28, 2022 2385 Views 0 comment Print

MAT (Minimum Alternative Tax Section 115JB)

Income Tax : Minimum Alternative Tax (Section 115JB) MAT Stands for Minimum Alternative Tax, he objective of introduction of MAT is to bring in...

January 30, 2022 7542 Views 0 comment Print


Latest News


Cabinet approves Taxation Laws (Amendment) Bill, 2019

Income Tax : In order to attract fresh investment in manufacturing and provide boost to 'Make-in India' initiative of the Government, another p...

November 20, 2019 1293 Views 0 comment Print

Clarify on MAT u/s 115JB: ICAI

Income Tax : The computation of book profit under section 115JB is a complicated and vexed issue with diverse interpretations possible on vario...

January 20, 2018 8679 Views 1 comment Print

CBDT relaxes MAT provisions for companies facing Insolvency

Income Tax : Relaxation in the provisions relating to levy of Minimum Alternate Tax (MAT) in case of companies against whom an application for ...

January 8, 2018 1671 Views 0 comment Print

Relevant part of recommendations of MAT-Ind AS Committee’s Report

Income Tax : Relevant part of MAT-Ind AS Committee Report dated 17th June, 2017 containing recommendations regarding amendment to the provision...

July 27, 2017 2151 Views 0 comment Print

ASSOCHAM advocates MAT exemption for sick companies under debt restructuring

Income Tax : Apex Industry body ASSOCHAM has advocated continuation of the exemption from MAT (Minimum Alternative Tax) by the insertion of a s...

April 27, 2017 816 Views 0 comment Print


Latest Notifications


CBDT notifies revised Form no. 29B for MAT audit with Annexures

Income Tax : Details of the amount required to be increased or decreased in accordance with sub-section (2A) of section 115JB- [Applicable only...

August 18, 2017 124761 Views 5 comments Print


DTC – MAT rate on book profit will be 20 percent

September 1, 2010 750 Views 0 comment Print

The government on Monday proposed to raise minimum alternate tax (MAT) to 20 per cent on book profits but diluted the earlier proposal to impose it on gross assets that had drawn protests from firms. MAT was introduced in fiscal 1998 to address the inequity. Many companies, despite making book profits as per their profit and loss account, were hardly paying any tax because income computed as per provisions of the Income-Tax Act, was either nil, or insignificant.

MAT U/s. 115JB of Income Tax not applicable to foreign company without presence in India

July 30, 2010 273 Views 0 comment Print

The assessee, a foreign company, without a presence or PE in India, earned long-term capital gains which were exempt u/s 10(38). The assessee applied for a ruling on whether it was liable to pay Minimum Alternate Tax (MAT) u/s 115JB on the said gains. HELD ruling in favour of the assessee:

Minimum Alternate Tax provisions for A.Y. 2010-11 & A.Y. 2011-12

July 15, 2010 30856 Views 0 comment Print

In the case of companies, if tax payable on its total income as computed under the I.T. Act, 1961 in respect of any previous years, is less than 15% (for assessment year 2010-11 and 18% from assessment year 2011-12) of its “book profit”, then such book profit shall be deemed to be the total income of the company and tax shall be payable at 15% (for assessment year 2010-11 and 18% from assessment year 2011-12) on such total income.

SEZ units and developers may come under MAT net under the DTC Regime

July 11, 2010 825 Views 0 comment Print

Although the revised draft Direct Taxes Code (DTC) has suggested the continuation of profit-linked incentives for existing SEZ units and developers, they are likely to come under the ambit of Minimum Alternate Tax (MAT). The revised draft of DTC has recommended the rate of MAT at 2 per cent of the value of gross assets as the final tax. The provision, if adopted, would negate the very objective of the SEZ policy, as the developers and units would then end up paying MAT, based on their book profits, which will be a final tax.

Suggestions of the ICAI on the Revised Discussion Paper on the Direct Taxes Code

July 9, 2010 552 Views 0 comment Print

A Revised Discussion Paper (RDP) on Direct Taxes Code (DTC) has been released by the CBDT on 15th June, 2010, taking into consideration the vital and critical issues raised by the various stakeholders on the DTC. It is extremely satisfying to note that six of the eleven significant issues identified in the RDP are as per the specific suggestions of the Direct Taxes Committee of the ICAI.

Revised DTC draft will be put for public comments within a month

June 10, 2010 486 Views 0 comment Print

With the draft direct taxes code being criticised for its proposal to tax long-term savings among others, the finance ministry on Wednesday said a revised draft will be put for public comments within a month for addressing the concerns of all stakeholders.

Government may scale down the Income Tax Slabs in Final Direct Tax code

May 14, 2010 444 Views 0 comment Print

People with more than Rs 10 lakh annual income may not get the tax relief originally proposed in the Direct Taxes Code, as the Finance Ministry is for tweaking slabs across the board to offset concessions elsewhere.

It department looking to reopen Assessment of companies paying MAT

March 25, 2010 414 Views 0 comment Print

The Income Tax Department has decided to reopen assessments for three years, up to 2006-07, for companies paying the minimum alternate tax (MAT)., for companies paying the minimum alternate tax (MAT). MAT, inserted in the Income Tax Act in 1996-97, is meant to make those companies pay tax which earn profit and pay dividend to shareholders but do not pay tax to the government. Under Section 115 JB of the Income Tax Act, such companies pay 18 per cent of their book profit as tax.

Budget 2010: Direct and Indirect Tax Proposals for Oil and gas Sector

March 7, 2010 405 Views 0 comment Print

Last year’s budget had introduced an investment linked tax incentive for specified business including the business of laying and operating a cross country natural gas or crude or petroleum oil pipeline network for distribution, including storage facilities being an integral part of such network. One condition for availing this benefit was that not less than one–third of the total pipeline capacity is available for use on common carrier basis.

Special Economic Zones approved in States

February 26, 2010 489 Views 0 comment Print

In addition to the Seven Central Government SEZs and 12 State/ Private Sector SEZs set up prior to the enactment of SEZ Act, 2005, formal approval have been accorded to 571 proposals out of which 348 SEZs have been notified. A total of 105 SEZs are already exporting.