MAT Credit Availability

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This discussion clarifies the availability of MAT (Minimum Alternate Tax) credit. Previously, MAT credit could be carried forward for 10 assessment years. However, an amendment effective from AY 2023-24 extended this period to 15 years. This change applies retrospectively to all unexpired MAT credit. Therefore, MAT credit paid in AY 2014-15 is available for use up to AY 2029-30, meaning the ₹1.00 Cr credit mentioned can indeed be claimed in AY 2025-26, provided other conditions are met.

Ashish Kumar Pandey

Ashish Kumar Pandey (Querist)
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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.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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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.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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24 September 2025 Good Luck...

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