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Rashmin Sanghvi & Associates

Chartered Accountants

220, 2nd Floor, Arun Chambers,
Tardeo Road,
Mumbai - 400 034,
Maharashtra, India.

Tel. Nos.: (+91 22) 2351 1878, 2352 5694.

Fax : (+91 22) 2351 5275.

Email : [email protected]

Home Articles Taxation         Share :

Budget 2017Chapter E

21. Minimum Tax and credit for Minimum Tax [S. 115JAA & 115JD]:

21.1 Minimum Alternate Tax (MAT) is payable by companies and Alternate Minimum Tax (AMT) is payable persons other than companies. Tax payable under ITA is higher of the following:

i) Tax under Normal provisions of the ITA; or

ii) Tax as per MAT/AMT provisions.

In a case where tax payable is as per MAT/AMT provisions, then the excess MAT/AMT paid over tax as per normal provisions, is available as credit in subsequent years. In subsequent years, if tax payable under normal provisions is higher than MAT/AMT, the excess MAT / AMT of earlier years can be set off against normal tax. (Please refer to our budget note for 2012 for a detailed example.)


21.2 As per the current provisions, MAT/AMT credit can be carried forward up to 10 years. Finance Bill provides for increasing this time limit to 15 years.