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

 

 

 

 

 

 

 

 

 

 

 



    • 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, ...

    • TDS - Tax Calculation for Senior Citizens (Assessment Year 2021-22)

      TDS - Tax Calculation for Senior Citizens Tax slab 2021-22 (Old tax regime slabs) (who is 60 years or more at any time during the previous year) Net Income Range Rate of Income-tax Assessment Year 2021-22 Assessment Year 2020-21 Up to Rs. 3,00,000 - ...