Calculation of Minimum Alternative Tax (MAT)
Calculation of Minimum Alternative Tax (MAT)
Minimum Alternate Tax (MAT
)
Tax liability as per the
MAT provisions
are given in Sec 115JB(
18.5
% of Book Profits Plus 4 % education cess plus a surcharge if applicable). The tax rate is 15% with effect from AY 2020-21 (FY 2019-20)
·
MAT is not applicable for Companies opting for new section 115baa (tax rate 22 %)
·
MAT is applicable
, for example when the book profit of the company as per Section 115JB is Rs199000. Thus, MAT at the rate of 15% of book profit will be Rs. 29850 plus cess and surcharge.
Example: -
Book profit computed – 199000
15 % of “Book profit as computed” = 29850
Note :- While uploading MAT return and the 18.5 rate (old rate) is coming on the income tax website, then it may be the issue of income tax website
Related Articles
MAT Credit Setoff
MAT Credit Setoff In the assessment year when regular tax becomes payable, the difference between the regular tax and the tax computed under MAT for that year will be set off against the MAT credit available. We understand this from the example ...Income Tax calculation AY 2010-11 (FY 2009-10)
Income Tax calculation AY 2010-11 (FY 2009-10) 1. In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person - Up to 1,60,000 – Nil 1,60,000 to ...How to Calculate Tax on 'AGRICULTURAL INCOME'
CALCULATING TAX ON AGRICULTURAL INCOME Take the sum of the agricultural income and non-agricultural income. The tax (A) should be computed on this amount. Example The base tax slab changes as per the change in Income Tax ...Deprecation calculation as per companies act 2013 in Income Tax
Deprecation calculation as per companies act 2013 Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The depreciable amount of an asset is the cost of an asset or other amount substituted for cost, ...Income Tax Slab for FY 2020-2021 (AY 2021-2022) in India
Income Tax Slab for Resident Individuals aged less than 60 Years(Both Male & Female) Budget 2020 has given the individuals options to choose from FY 2020-21 onwards. Either to opt for the same tax rates which were applicable in last year or the new ...