CCI Online Learning
What do you want to learn today?
     
CIBIL

Upgrad

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Income related deductions and MAT


SHREYAS   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

avater

Sagar Patel (Tax and Business Consultant)     23 September 2020

Sagar Patel
Tax and Business Consultant 
 996 likes  11146 points

View Profile | My Other Post

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.

1 Like
avater

SHREYAS   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

avater

Sagar Patel (Tax and Business Consultant)     23 September 2020

Sagar Patel
Tax and Business Consultant 
 996 likes  11146 points

View Profile | My Other Post

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 ..


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  


Bajaj Finserv

Related Threads


Loading

Trending Tags