Concept of MAT, Income Tax

[Rahul Bagaria]

Can someone please beirf me about the concept of "MAT"

Posts / Replies

[Rajan R.Dhawade-C.A.]

There were large no.of companies who had book profits as per their Profit & loss a/c but were not paying any tax because income computed as per the provisions of the income tax act was either nil or negative . in such case although the companies were showing book profits and declaring dividends to the sharholders they were not paying any income tax. These companies are popularly known as Zero tax companies. In order to bring such companies under the income tax net, section 115JA Was introduced w.e.f.1997-98. It is called minimum alternate tax.

[Mukesh Kumar]

Thanks CA (Mr.) Rajan R Dhawade