Minimum Alternate Tax (MAT) is imposed on
All companies
Minimum Alternate Tax under Section 115JB applies to every company, domestic or foreign, public or private. If the tax payable under the normal provisions is less than 18.5 percent of book profit (rate for AY 2015-16, plus surcharge and cess), the book profit is deemed to be the total income and tax is levied at that rate.
The provision targets zero-tax companies that show large book profits and pay dividends but have little taxable income because of exemptions, deductions and depreciation. The MAT paid can be carried forward as a credit for ten years.
Since it covers all companies, limiting it to public or private companies is wrong. Partnership firms are not companies and do not pay MAT; non-corporate assessees such as LLPs and firms claiming certain deductions pay a separate Alternate Minimum Tax under Section 115JC.
Hence, All companies.
Similar Questions
Under which of the following situations, the Appellate Tribunal can rectify the mistake in the order passed by it under Sec 254 (2) of Income Tax Act ?
(a) If subsequent decision of the Supreme Court/High Court is available on the subject after the Appellate Tribunal’s order
(b) If an assessee apply for rectification of the Tribunal’s order by raising fresh grounds before the Tribunal
(c) If the omission or mistake is on the part of Appellate Tribunal
(d) If the order is passed by the Appellate Tribunal under an erroneous impression of fact or law
Codes :
Mr. A earned a capital gain of ₹ 100 lakhs on 1-2-2014 from the sale of a long term capital asset (land) within the limits of Jaipur corporation. If he invests ₹ 60 lakhs, out of ₹ 100 lakhs, in Rural Electricity Corporation Bonds approved under Sec. 54 EC in 20-2-2014, what is the amount of exemption he can claim under Sec. 54 EC of Income Tax Act for the AY 2014-15 ?
Which of the following income is not chargeable under the head ‘income from business and profession’ ?
In which of the following cases, Assessing officer has the discretion to assess the income of the previous year in the previous year or in the subsequent assessment year ?
Which of the following are true in tax planning ?
(i) It is futuristic in its approach.
(ii) It has limited scope compared to tax management.
(iii) The benefits arising from it are limited particularly in the short run.
(iv) Its main objective is to reduce the tax liability.
Codes :
In which of the following long term assets, cost indexation benefit is allowed ?
Long term capital loss can be set off from which of the following ?
In which of the following cases, income of previous year is assessable in the previous year itself ?
Match the following items of List – I and List – II and select the correct answer from the codes given below :
List – I (Sections) List – II (Maximum Deduction) a. Section 80C of I.T. Act i. ₹ 10,000 b. Section 80D of I.T. Act ii. ₹ 40,000 c. Section 80 DDB of I.T. Act iii. ₹ 1,00,000 d. Section 80 TTA of I.T. Act iv. ₹ 15,000 Codes :
a b c d
Which one of the following is not an example of tax evasion?
Important Questions from Income-tax
Tax audit is compulsory in the case of a person carrying on profession and whose gross receipts exceeds which one of the following?
Which are the appropriate tax planning perspectives in case of shutdown or continued decision under the Income Tax Act, of 1961?
A. Business loss and unabsorbed depreciation can be carried forward and set off against profit and gain.
B. The loss-making company and profit-making company may merge to avail of the tax benefit
C. Tax benefit of deduction u/s 33 AB and 115 VT may be withdrawn and liable to tax for the year in which the business is discontinued.
D. The condition of section 80 IB / 80 IC of the Act, a deduction is allowed for such undertaking
E. If a person has more than one business, the loss-making business may not be discontinued.
Choose the most appropriate answer from the options given below:
Which of the following is NOT a change of the new Income Tax bill introduced in the Parliament during February 2025?
What is the basic difference in the aggregates at market price and factor cost?
The ratio of income and expenditure is 9:5. Income increases by 40% and expenditure decreases by 10%. If the initial income is ₹45,000 then the final saving (in ₹) is:
