Mat Tax Rate In India

Tax 30 on rs.

Mat tax rate in india.

Moreover mat can be subject to certain conditions carried forward or. However mat would be rs1 29lakh 18 5 of rs7lakh. Mat is a tax provision reintroduced in 1997 in an attempt to bring zero tax high profits companies into the income tax net. Mat liability excluding cess and surcharge 15 on rs.

The effective tax rate for such companies shall be 25 17 percent inclusive of surcharge and cess and provisions of minimum alternate tax mat shall not be applicable. 8 40 000 will amount to rs. Effective tax rates include surcharge and health and education cess. Payable tax cannot be less than the 18 5 of book profit in an assessment year the mat rate has been reduced to 15 from fy 19 20.

The key reason for introduction of mat is to ensure minimum levels of taxation for all domestic and foreign companies in india. Basic rate of mat is 9 of book profits in case of a corporate and non corporate taxpayer located in an international financial services centre and deriving income solely in convertible foreign exchange. What is minimum alternative tax. On september 20 finance minister nirmala sitharaman announced the reduction of minimum alternative tax mat for companies from 18 5 percent to 15 percent for those who continue to avail.

8 40 000 will amount to rs. India slashed corporate tax rates to 22 from 30 for existing companies and to 15 from 25 for new manufacturing companies. Normal tax rate applicable to an indian company is 30 plus cess and surcharge as applicable. Book profit of the company is rs.

Normal tax rate applicable to an indian company is 30 plus cess and surcharge as applicable. Mat liability excluding cess and surcharge 15 on rs 18 40 000 will come to rs. Govt cuts mat rate to 15 per cent. 18 40 000 will come to rs.

How is mat calculated. Companies can opt for the higher tax rates or the new ones. Including a surcharge and cess the effective tax rate for existing companies would now come down to 25 17 from 35. It is calculated under section 115jb of the income tax act.

Surcharge of 10 is payable only where total taxable income exceeds inr 10 million. Therefore applicable income tax is charged 30 i e. Tax 30 on rs.