Minimum Alternate Tax Mat Pdf

In the case of a non corporate taxpayer to whom the provisions of alternate minimum tax amt applies tax payable cannot be less than 18 5 hec of adjusted total income computed as per section 115jc.

Minimum alternate tax mat pdf.

This tax is computed using a separate charging section altogether. Minimum alternate tax mat. With mat companies have to pay up a minimum amount of tax to the government. Initially the concept of mat was introduced for companies and progressively it has been made applicable to all other taxpayers in the form of amt.

Minimum alternate tax mat markets and mayhem. In india mat is levied under section 115jb of the income tax act 1961. For provisions relating to amt refer tutorial on mat amt in tutorial section. Mat is levied at the lower rate of 9 plus surcharge and cess as applicable for companies that are a unit of an international financial services centre and derive their income solely in.

It was introduced in the year 1987 and. Year it is a new tax controversy. Over the last year foreign portfolio investors fpis have been asked to pay mat on the past capital gains. Mat and amt mat stands for minimum alternate tax and amt stands for alternate minimum tax.

Introduction as the book profit based on ind as compliant financial statement is likely to be different from the book profit based on existing indian gaap the cbdt constituted a committee in june 2015 for suggesting. 15th june 2017 1. In this part you can gain knowledge about various provisions relating to mat and amt. For fy 2019 20 tax payable is computed at 15 previously 18 5 on book profit plus applicable cess and surcharge.

The manner of computation of mat has been prescribed in section 115jb.