Is mat payable can set off against tds

sorry..............yes it can b adjsted

@ ankur..can you please explain why?

Hi Navin,

Yes , MAT can be set off against the credit available in 26AS.....First you need to do the calculation of MAT than set off with the 26AS credit......

@ pooja

hi if you any other answer can you pls put forward & then decide on it.

@ Ankur

Hi dear....can you please explain why the MAT can't be set off against 26AS credit ?

Hi jaiveer many thanks for your answer

can u pls convey your answer with reference to the section of income tax act.

i also think it can be set off..if its not allowed to set off.it would lad to excess levy of tax

Hi Navin

Need to find it out but as you have the tax credit of 26AS the same can be seen as tax paid in advance.  According to this you can set off your MAT against this. Further i will find out the exact section & will post the same here.......

Do allow me some time for the same.

If tax computed as per MAT is more thanthe tax computed under other provisions of Income tax, then, tax computed under MAT is what is to be remitted to the Government. Now since tax calcuted under MAt becomes our income tax liability, it can be adjusted against advance tax paid or TDS receivable and the balance can be paid under self assessment.

(Ankur, please correct me if I am wrong) 

DEAR

MAT LIABILITY ARISE WHEN TAX CALCULATED ON NORMAL PROFIT IS LOWER THAN TAX CALCULATE -D ON BOOK PROFIT . IT MEANS MAT IS OUR LIABILITY HENCE TDS SHOWN IN 26AS ARE LIABLE FOR SET OFF PURPOSE.

See Sec 115JB(5)

hi NAVIN.......

MAT represents income tax and TDS also represents income tax ...........

section 115JB(5) specifically allows all other provisions of income tax act for the purpose of MAT.

hence , TDS credits is eligible for set off against MAT tax .

Dear All,

Yes, It Can Be Adjusted.

Since The MAT 115JB & IT Are All Governed by One & Single Act, Income Tax act.

See the Logic:

If Say You Dont Adjust, The You Will Ask for 26AS Credit i.e TDS Refundable.

Ultimate Result is One & Same.

MAT CREDIT CANNOT BE USED TO SET OFF WITH 26AS. IT CAN BE USED ONLY WHEN TAX PAYABLE AS PER INCOME TAX ACT IS MORE THAN TAX PAYABLE AS PER BOOK PROFIT.