Mat credit

please clarify your doubt........

Originally posted by : mukesh haseja
	Dear sir,  Whether Mat credit should be taken before   Surcharge & Education cess  or after Surcharge & education cess   when our  income tax liability is more than Mat Liability and there is also mat credit available of previous year

Dear mukesh,

So far as i see it I feel you have this querry because of Income tax form 4. My personal views are that you should take mat credit after surcharge and education cess, because both education cess and surcharge are a form of tax and thus are elegible for mat credit.

But in income tax form its given before surcharge and cess. so far income tax form purpose you have to adjust your figures accordingly and if amount is material you can take the issue with the department..

Originally posted by : Chandrashekar
	Originally posted by : mukesh haseja Dear sir,  Whether Mat credit should be taken before   Surcharge & Education cess  or after Surcharge & education cess   when our  income tax liability is more than Mat Liability and there is also mat credit available of previous year Dear mukesh, So far as i see it I feel you have this querry because of Income tax form 4. My personal views are that you should take mat credit after surcharge and education cess, because both education cess and surcharge are a form of tax and thus are elegible for mat credit. But in income tax form its given before surcharge and cess. so far income tax form purpose you have to adjust your figures accordingly and if amount is material you can take the issue with the department..

Hi Mukesh, I agree with Chanrashekhar. In practical You should calculate Tax + surcharge+ Cess and than take credit of MAT.