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Querist : Anonymous

Querist : Anonymous (Querist)

18 February 2011 in which condition MAT IS Applicable and on which amount should the MAT be computed

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 February 2011 Pl see https://taxguru.in/income-tax/minimum-alternate-tax-mat-provisions-under-the-income-tax-act-for-a-y-2010-11-and-a-y-2011-12.html

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Abhishek

Abhishek (Expert)
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15 March 2011 Step 1: Compute tax under normal provisions

Step 2: Compute tax @ MAT rate - on the book profits i.e profits as per audited accounts +_ certain adjustments laid down in Section 115 - and the rate is 18% which has been increased to 18.5% in the budget.

2) If tax under Step 2 is higher - then MAT is applicable i.e you have to pay tht tax even if your tax as per normal computation is Nil.

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