Calculation of Minimum Alternative Tax (MAT)

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












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