Minimum Alternate Tax
This query is : Resolved
23 June 2009
Plese give me full details about Minimum Alternate TAx.
23 June 2009
Minimum Alternate tax (called “MAT”) was imposed on companies due to the increase in the number of zero-taxpaying companies.
Companies pays no or less tax, in spite of earning good book profits and having paid good dividends.
Companies claims that their tax profit (as per provision of income tax Act) is nil or less so they (company) need not have to pay tax.
SO to trap the tax escaping companies & reduce evasion MAT was introduced.
Under mat system a company has to pay
(1) income tax on profit computed as per income tax act,1961
OR
(2) @ 10% of book profit (as per accounts) after some simple adjustments mentioned u/s 115JB of the income tax act,1961.
Which ever is HIGHER
Minimum Alternate tax (called “MAT”) was imposed on companies due to the increase in the number of zero-taxpaying companies.
Companies pays no or less tax, in spite of earning good book profits and having paid good dividends.
Companies claims that their tax profit (as per provision of income tax Act) is nil or less so they (company) need not have to pay tax.
SO to trap the tax escaping companies & reduce evasion MAT was introduced.
Under mat system a company has to pay
(1) income tax on profit computed as per income tax act,1961
OR
(2) @ 10% of book profit (as per accounts) after some simple adjustments mentioned u/s 115JB of the income tax act,1961.
Which ever is HIGHER
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Sale of goods to the purchasing party
- OLD REGIM AND NEW REGIM
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- Can we choose not to report losses in ITR3 if they cannot be carried forward?
- Clarification Required on Filing Form 141 for Joint Buyers
- FORM 10BB/10B REQUIRED OR NOT
- EMI ISSUE IN HOUSING LOAN OLD REGIME
- RATE AND HSN CODE
- Portuguese Civil Code IT Return
- I have sent ITR to CPC and delivered in due date , but portal itr status not updated
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
