MAT Rate & its Applicablity
What to Do If MAT applicable rate is 9%?
MAT stands for Minimum Alternate Tax and AMT stands for Alternate Minimum Tax. Initially the concept of MAT was introduced for companies and progressively it has been made applicable to all other taxpayers in the form of AMT.
The objective of introduction of MAT was to bring into the tax net "zero tax companies" which in spite of having earned substantial book profits and having paid dividends, do not pay any tax due to tax concessions and incentives provided under the Income-tax Law.
What are applicable rates of MAT?
MAT is computed @ 15% (plus surcharge and cess as applicable) on book profit.
MAT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.
Process In Software.
Sometimes user may notice that the applicable rate in MAT report in coming as 9% instead of 15% or vice versa. So for that, user is suggested to check the IFSC unit option as below:
Transactions>>Filing Information>>Other Information and choose IFSC unit as YES or NO from the drop down.
Hope this clarifies.
Related Articles
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 ...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 || IFSC Code not found
Note: Before proceeding with the above instructions, it is strongly recommended to take a backup of the software. Follow the detailed steps below: Backup Procedure: a. Navigate to the C Drive. b. Copy the "KDK Data" folder and the "Data" folder from ...Excel import - Tax Rate should be numeric
Excel import - Tax Rate should be numeric Solution This error comes when TDS details (24q,26q,27q,27eq) are imported from Excel Template and the tax rate is not entered in the numeric format Open excel template > "deductee detail" sheet Select a ...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 ...