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Jun 3, 2022 · Normal tax rate applicable to an Indian company is 30%* (plus cess and surcharge as applicable). Tax @ 30% on Rs. 8,40,000 will amount to Rs. 2,52,000 (plus cess). Book profit of the company is Rs. 18,40,000. MAT liability (excluding cess and surcharge) @ 15% on Rs.18,40,000 will come to Rs. 2,76,000.
3 days ago · Learn more about Section 115JB, tax obligation under the Income Tax Act - Read to know the fundamentals of MAT (Minimum Alternate Tax) including what is MAT credit, eligibility and calculation of MAT
Alternative Minimum Tax – Basics. As it is evident from the name, AMT is a minimum tax that is leviable alternative to normal tax. Rate of AMT is 18.5% of adjusted total income (plus applicable surcharge and cess).
Jun 26, 2024 · Minimum Alternate Tax (MAT) is applicable to Companies in India. MAT was introduced to address the situation where companies reported book profits in their financial statements but ended up paying little or no income tax due to various exemptions, deductions, and allowances available to them under the Income Tax Act.
Jan 19, 2024 · Minimum Alternate Tax (MAT): For FY 2019-20, tax payable is computed at 15% (previously 18.5%) on book profit plus applicable cess and surcharge.
May 23, 2024 · AMT or Alternative Minimum Tax at the rate of 18.5%. When is Alternative Minimum Tax Applicable? In the beginning, the concept of Alternative Minimum Tax was introduced for companies. However, the Finance Act 2011 and 2012 amendments extended the scope of AMT to LLPs, non-corporate taxpayers, and Individuals. AMT is applicable to the following -
The Minimum Alternate Tax is a measure to include all companies in the income tax loop. The MAT ensures that no company with healthy finances and substantial income can avoid paying income tax, even after claiming exemptions. This is an important topic for the UPSC syllabus of the Indian Economy subject [GS-III].
