Indian Company Master Data Made Simple

MAT - Minimum Alternate Tax

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Quick Summary

MAT ensures companies pay minimum tax even if they have exemptions and deductions.

MAT is calculated at 15% on book profits (plus cess and surcharge). It applies when normal tax payable is less than 15% of book profit. MAT credit can be carried forward for 15 assessment years.

Key Points

  • 15% of book profits
  • When normal tax < 15%
  • Credit carry forward 15 years
  • Applies to companies
  • Plus cess and surcharge