Minimum Alternate Tax Mat Pdf

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

Minimum alternate tax mat pdf.

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. 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. Mat and amt mat stands for minimum alternate tax and amt stands for alternate minimum tax. Minimum alternate tax mat.

The manner of computation of mat has been prescribed in section 115jb. In india mat is levied under section 115jb of the income tax act 1961. In this part you can gain knowledge about various provisions relating to mat and amt. 15th june 2017 1.

Year it is a new tax controversy. Faced with requests for clarity the mat provisions were amended in 2015 to exempt fpis from paying mat on capital gains. 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.

For fy 2019 20 tax payable is computed at 15 previously 18 5 on book profit plus applicable cess and surcharge. Over the last year foreign portfolio investors fpis have been asked to pay mat on the past capital gains. 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. With mat companies have to pay up a minimum amount of tax to the government.

Minimum alternate tax mat markets and mayhem.