tax credit of mat

Dear Balan Ji,

Yes. You can claim the credit of MAT paid in AY 2009-10 in AY 2010-11 provided that MAT credit cannot reduce your tax liability below the tax payable under MAT in AY 2010-11.

For Example,

Suppose your Normal Tax Liability is Rs. 55,570 and your MAT Liability is Rs. 35,570

then, you cannot avail the credit of 30,000. You can avail the credit of Rs. 20,000 only.

In short, in any case your tax liability cannot be less than the tax under MAT.

Regards,

CA. Sunil Garg.