Answer / al ameen

MINIMUM Alternate Tax - <MAT is the minimum tax to be paid
by a company even though the company is not making any profit.
This MAT can be set off for the coming several years. And
this is applicable to IT companies i think

Answer / tax beginner

The Indian Income Tax Act contains large number of
exemptions from total income. Besides exemptions, there are
several deductions permitted from gross total income.
Further, depreciation allowable under the Income Tax Act is
not the same as required under the Companies Act. The
result of such exemptions, deductions, and other incentives
under the Income tax Act in the form of liberal rates of
depreciation is the emergence of Zero tax companies which
in spite of having high book profit are able to reduce
their taxable income to nil.

The system of minimum alternate tax has accordingly been
introduced under which a company is required to pay a
minimum tax of 18 % of the book profit in case the tax on
the total income computed under the normal provisions of
law works out to less than this amount [Sec 115JB].

So if Book Profit before Depreciation for a Construction
(Infrastructure) Company is for example Rs.7,00,000/- and
after claiming for Depreciation and other exemptions Gross
Taxable Income comes down to 4,00,000/-. The Tax works out
to be Rs.1,20,000/- (30%).
However MAT works out to be Rs.1,26,000/- (Rs.7,00,000/- @
18%). The Company has to pay the MAT of Rs.1,26,000/-

Answer / devebdra chandak

MINIMUM Alternate Tax. example Rs.7,00,000/- and
after claiming for Depreciation and other exemptions Gross
Taxable Income comes down to 4,00,000/-. The Tax works out
to be Rs.1,20,000/- (30%).
However MAT works out to be Rs.1,26,000/- (Rs.7,00,000/- @
18%). The Company has to pay the MAT of Rs.1,26,000/-

Answer / jagjeet singh

mat:- maximum alternate tax only apply to comoany

Answer / shibi

The concept of Minimum Alternate Tax (MAT) was introduced in the direct tax system to make sure that companies having large profits and declaring substantial dividends to shareholders but who were not contributing to the Govt by way of corporate tax, by taking advantage of the various incentives and exemptions provided in the Income-tax Act, pay a fixed percentage of book profit as minimum alternate tax.

Answer / a bandyopadhyay

MAT is a tax levied on the book profit/net profit of a zero tax company.
It is re introduced on 1st April 1997.

Answer / ankush kumar arora

MAT stands for Minimum Alternate Tax, as per Income tax Act, 1962. It is applicable to Companies and Firms/LLPs. Many a time, firms and companies avail all the benefits in tax laws and end up paying a paltry sum as tax or pay no tax at all, on account of excellent tax planning. The Government reports poor tax collection and thereby the projects of the government are not met or results in greater deficit than estimated. If it is not plugged in time, these perpetual deficits would result in greater inflation in the economy. Hence the governments all over the world have brought this concept of minimum amount of tax, to be collected, regardless of benefits received/availed by taxpayers. Tax is levied @ 30% and 40% on the total (taxable) income computed as per Income tax Act, 1962 for domestic and foreign companies respectively. MAT is computed at the rate of 18.5% on the book profit. Book profit is nothing but profit as per accounting records prepared for the purpose of the Companies Act, with some adjustments carried out as given under Section 115JA of Income tax Act.

Answer / raj kumar sharma

What is the due date of filing C-form in sales tax
department for the year 2009-2010

Answer / pooja jain

MAT - MINIMUM ALTERNATE TAX IT WILL BE APPLICABLE ON ALL
TYPES OF COMPANIES. IT CAN BE SET OFF NEXT SUBSEQUENT YEAR
IF WE ARE PAYING THE NORMAL TAX I.E.(FLAT RATE 30%) IF WE
ARE PAYING AGAIN MAT THEN ITS CREDIT CANNOT BE TAKEN AND
WILL BE FORWARD FOR NEXT F.Y.IT CAN BE FORWARD FOR CREDIT
UPTO 4 YEARS (I THINK SO)

Answer / suresh

mat is a tax for construction;s company

Hi May i know i 2 avoid Income Tax.I am getting 1,20,000PA and a house rent of 5000PM,and profit from Agriculture Income of 80,000.Is agriculture Income taken into consideration.If so how 2 calculate further & how much will b the Income TaxI will b getting.

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