The concept of MAT was introduced under income tax act to tax companies having profit as per books and declaring dividends but have no significant taxable income because of exemptions, deductions, incentives and tax holidays available to them. The intention of MAT was to ensure that no company with substantial income can avoid tax liability by using deductions and incentives.
In this article, we will see only the additions to book profit and understand the same in very simple manner. If you w
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