- Rate of AMT is 18.5% plus 12% surcharge, if adjusted total income exceed Rs 1 Crore, plus 3% education cess of adjusted total income
- AMT is payable only if adjusted total income of such person exceed Rs. 20,00,000.00
- AMT provision are applicable to whom who has claimed deduction under section 80-IA to 80RRB except 80P or under section 10AA, or Section 35AD. In simple languages if assesse are not claiming deduction under these section then AMT provision shall not apply.
How to compute adjusted total income
|Total income as per normal provision of income tax act||xxx|
|Add: deduction under section 80-IA to 80RRB except 80P||xxx|
|Add: Deduction under section 10AA||xxx|
|Add: deduction claimed under section 35AD||xxx|
|Less: Depreciation under section 32 on asset for which deduction under section 35AD claimed||xxx|
|Adjusted total Income||xxx|
AMT credit can be forwarded to 10 year
What is MAT
- MAT is stands for Minimum alternate tax
- MAT is Payable By Company only
- Rate of MAT in case of domestic company is 18.5% of book Profit plus 7% surcharge, if book profit exceed Rs. 1 Crore less marginal relief, 12% if if book profit exceed Rs. 10 Crore less marginal relief plus 3% education cess.
- Rate of MAT in case of Foreign company is 18.5% of book Profit plus 2% surcharge, if book profit exceed Rs. 1 Crore less marginal relief, 5% if if book profit exceed Rs. 10 Crore less marginal relief plus 3% education cess.
- For the purpose of the MAT Provision every company shall prepare its profit and loss as per part II of schedule VI of The Companies Act. As per finance act 2012 insurance company, banking company, electricity company shall not require to prepare their profit and loss as per said provision and profit and loss account prepared as per regulatory requirement shall be taken for the purpose of MAT provision
Categories: Income Tax