MAT Credit Availability
This query is : Resolved
07 August 2025
Dear Sir,
Query:-
If a company Paid MAT Tax in AY 2014-15 of Rs. 1.00 Cr and never take credit of that tax till now.
and now in the Current AY company liable to Pay normal Tax.
So now my query is AY 2014-15 MAT Credit of Rs. 1.00 Cr is available in AY 2025-26 or not for me.
MAT Credit available rule Up to 15 Years as per Latest amendment .
Is there any doubt for taken MAT credit in AY 2025-26 due to in earlier take credit only 10 Yrs of MAT Credit.
Query:-
If a company Paid MAT Tax in AY 2014-15 of Rs. 1.00 Cr and never take credit of that tax till now.
and now in the Current AY company liable to Pay normal Tax.
So now my query is AY 2014-15 MAT Credit of Rs. 1.00 Cr is available in AY 2025-26 or not for me.
MAT Credit available rule Up to 15 Years as per Latest amendment .
Is there any doubt for taken MAT credit in AY 2025-26 due to in earlier take credit only 10 Yrs of MAT Credit.
08 August 2025
Legal Position (as per Finance Act, 2023):
Before Amendment: MAT credit could be carried forward for 10 assessment years.
After Amendment: Effective from AY 2023-24, the MAT credit carry forward limit is 15 years (under section 115JAA(4) of the Income Tax Act).
This applies retrospectively to all unexpired MAT credit as on AY 2023-24, even if it was from a year when the 10-year rule was in place.
So, counting 15 years from AY 2014-15, the MAT credit is available up to AY 2029-30.
Therefore, in AY 2025-26, you can utilize the MAT credit of ₹1.00 crore against normal tax liability, subject to availability and other conditions.
Before Amendment: MAT credit could be carried forward for 10 assessment years.
After Amendment: Effective from AY 2023-24, the MAT credit carry forward limit is 15 years (under section 115JAA(4) of the Income Tax Act).
This applies retrospectively to all unexpired MAT credit as on AY 2023-24, even if it was from a year when the 10-year rule was in place.
So, counting 15 years from AY 2014-15, the MAT credit is available up to AY 2029-30.
Therefore, in AY 2025-26, you can utilize the MAT credit of ₹1.00 crore against normal tax liability, subject to availability and other conditions.
24 September 2025
Good Luck...
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