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
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- REGARDING GST LIABILITY/....
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Suggestions required for income tax filing-software (FY 2025-26)
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
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
