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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