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Income related deductions and MAT

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7 Points Posted on 23 September 2020
Even if for instance a company avails deduction us 10AA, or 80I series still it needs to pay MAT @ 15% on book profits. So can't we say that Tax is to be paid even if Income is exempt by way of deduction?
literally no income is exempt
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On 23 September 2020 at 09:08 Report
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Tax and Business Consultant
11616 Points Posted on 23 September 2020
Yes, MAT is still payable...but in future you can take credit of MAT, which is paid by you...

As Per My View, MAT credit is actual benifit, otherwise, for you literally no income Exempt if you are not able to take benefit of MAT credit.i.e if it's lapse without use.
66 Reply
On 23 September 2020 at 12:07
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7 Points Posted on 23 September 2020
Thanks a lot
so the crux is MAT credit is useful after the Period of availing deduction expires and when your profits start getting taxable @ normal rates
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On 23 September 2020 at 12:38
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Tax and Business Consultant
11616 Points Posted on 23 September 2020
Yes, Exactly.....
And this MAT credit is allowed to be carry forward for a period of 15 financial years. So, You have a 15 Years of time ..
66 Reply
On 23 September 2020 at 12:56


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