Minimum Alternate Tax Mat Pdf

Faced with requests for clarity the mat provisions were amended in 2015 to exempt fpis from paying mat on capital gains.

Minimum alternate tax mat pdf.

In this part you can gain knowledge about various provisions relating to mat and amt. For fy 2019 20 tax payable is computed at 15 previously 18 5 on book profit plus applicable cess and surcharge. Understanding the concept of liability to pay minimum alternate tax mat and alternate minimum tax amt and various provisions like book profit dividends paid or proposed depreciation deferred tax income of foreign company etc. Amt on companies is called the minimum alternate tax mat while the amt on all limited liability partnerships llps other taxpayer categories with income above a threshold of inr two million is termed alternate minimum tax 1 the computation of mat on companies under the income tax act 1961 act is a complex provision as it makes.

It was introduced in the year 1987 and. Introduction as the book profit based on ind as compliant financial statement is likely to be different from the book profit based on existing indian gaap the cbdt constituted a committee in june 2015 for suggesting. Mat is levied at the lower rate of 9 plus surcharge and cess as applicable for companies that are a unit of an international financial services centre and derive their income solely in. Minimum alternate tax mat markets and mayhem.

With mat companies have to pay up a minimum amount of tax to the government. In india mat is levied under section 115jb of the income tax act 1961. Minimum alternate tax mat. Mat and amt mat stands for minimum alternate tax and amt stands for alternate minimum tax.

In the case of a non corporate taxpayer to whom the provisions of alternate minimum tax amt applies tax payable cannot be less than 18 5 hec of adjusted total income computed as per section 115jc. This tax is computed using a separate charging section altogether. The manner of computation of mat has been prescribed in section 115jb. 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.

For provisions relating to amt refer tutorial on mat amt in tutorial section.