Minimum Alternate Tax( MAT) Section 115JB Income
According to Income Tax Act, 1961 Income Tax is liable on income earned during the relevant previous. But some companies was showing huge profit according companies Act book of account while computation income according to Income Tax Act ,1961 show’s Nil profit. So that these type of companies escape from income tax due to difference in depreciation rate and condition of allowance or disallowance in both Act. While notice that many companies follow this trend. Central Government bring Section 115JB as minimum alternate tax.The concept of MAT is govern by the provisions contains in section 115JB of Income Tax Act, 1961.
Scope of Minimum Alternate Tax
MAT is applicable to all companies including foreign companies.
MAT Tax Rate
According to section 115JB every taxpayer being a companies is liable @15% of book profit
Plus surchage ( as applicable)
Plus Education cess
MAT rate will be 9% of Book profit if company is
A unity of an International Financial Service Centre and bring convertal foreign exchange.