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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