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What is Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT)

About Minimum Alternate Tax (MAT)

What is Minimum Alternate Tax (MAT)

Companies can reduce their tax liability through various provisions of the Income-Tax Act, such as exemptions, deductions, depreciation, etc. There have been instances of some companies even managing to show nil taxable income despite making substantial profits and paying out dividends, thanks to the various tax concessions and incentives. The tax provision known as Minimum Alternate Tax (MAT) was created to bring these ‘zero-tax paying companies’ within the ambit of income tax and make them pay a minimum amount in tax to the government.
 
To improve accountability, and to ensure that no company avoided paying taxes, the Government of India in
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Latest Updates on Minimum Alternate Tax (MAT)

Govt plans to remove minimum alternate tax on SEZs, boost exports

Govt also considering reducing duties on domestic sales

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Updated On : 02 Jan 2020 | 8:03 PM IST

Rs 75,000-crore minimum alternate tax credit dilemma grips India Inc

Fifteen heavyweight companies have accumulated MAT credit in excess of Rs 1,000 crore each

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Updated On : 02 Jan 2020 | 8:04 PM IST

Firms won't be allowed to adjust MAT credit if they opt for lower tax: CBDT

Experts say new tax rates not attractive to companies enjoying tax holidays

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Updated On : 02 Jan 2020 | 8:04 PM IST

Firms opting for lower tax regime can't adjust accumulated credits on MAT

The ordinance to cut the corporation tax rate has said MAT provisions will not apply to a company which has exercised the option for a lower rate of tax

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Updated On : 02 Jan 2020 | 8:04 PM IST

FM's tax cuts: Reduction in MAT to benefit IT companies in Gift City

They were to pay 18.5 per cent MAT so far, but will now have to pay 15 per cent MAT

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Updated On : 02 Jan 2020 | 8:04 PM IST

Budget 2019: Finance Bill seeks to address carry over of losses, MAT norms

These two amendments were long-pending demands of industry and insolvency professionals

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Updated On : 02 Jan 2020 | 8:04 PM IST

Budget 2018: FinMin may tweak Minimum Alternate Tax norms to boost industry

There is a need to revisit the corporate tax rate in Union Budget 2018-19, to be presented to Parliament on February 1: Expert

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Updated On : 02 Jan 2020 | 8:12 PM IST

CBDT relaxes norms for MAT on firms facing insolvency

This has been done to minimise the genuine hardships faced by such companies, said the Central Board of Direct Taxes (CBDT)

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Updated On : 02 Jan 2020 | 8:12 PM IST

Stressed asset buyers may get relief from competition law, MAT

Govt-appointed committee planning to recommend amendments to bankruptcy code to make this happen

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Updated On : 02 Jan 2020 | 8:13 PM IST
Updated On : 02 Jan 2020 | 8:15 PM IST

Uncertainty over MAT on foreign firms without place of biz

Clarity on whether the proposals will also extend to foreign firms without a PE in India will depend on fine print of actual amendments of I-T Act provisions

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Updated On : 02 Jan 2020 | 8:14 PM IST
Updated On : 02 Jan 2020 | 8:14 PM IST