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Answer Posted / asharaf khan
Mat- Minimum Alternative Tax
As per section 115 JA of the Income Tax Act, if a company’s
taxable income is less than a certain percentage of the
booked profits, then by default, that much of the book
profits will be considered as taxable income and tax has to
be paid on that.
The current rate for MAT is 18%, up from 7.5% in 2001-2002.
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