Mat Tax Full Form

Minimum alternate tax mat is a tax effectively introduced in india by the finance act of 1987 vide section 115j of the income tax act 1961 it act to facilitate the taxation of zero tax companies i e those companies which show zero or ne.

Mat tax full form.

In terms of taxation mat minimum alternate tax it is a tax that has to be paid by the companies that are enjoying tax benefits or tax exemption under various schemes. Tax mat abbreviation meaning defined here. Mat is mostly targeted to the r d companies and export oriented units. What is the full form of mat.

Mat or minimum alternate tax is a provision in direct tax laws to limit tax exemptions availed by companies so that they pay at least a minimum amount of corporate tax to the government. What does mat stand for in tax. In terms of exam mat management aptitude test. Minimum alternate tax mat minimum alternate tax mat is a tax effectively introduced in india by the finance act of 1987 vide section 115j of the income tax act 1961 it act to facilitate the taxation of zero tax companies i e those companies which show zero or negligible income to avoid tax.

The key reason for introduction of mat is to ensure minimum levels of taxation for all domestic and foreign companies in india.