What Is Mat Tax In Hindi

Under the provisions of section 115jb where the income tax calculated under the income tax act is less than 18 5 of the book profit then such book profit shall be deemed to the total income of the assessee and tax payable by the assessee shall be 18 5 on book profits.

What is mat tax in hindi.

But here only mat on company s u s 115jb is discussed. Normally a company is liable to pay tax in accordance with the provisions of the. There are several zero tax companies that book high profit but pay almost nil taxes by rolling out substantial dividends to their shareholders. Let us understand in detail what mat is.

The tax liability of a company will be higher of. 8 40 000 will amount to rs. Mat is a tax levied under income tax act of india 1961. I normal tax liability or ii mat.

Minimum alternate tax mat in the case of companies if tax payable on its total income as computed under the i t. Minimum alternate tax mat meanwhile is like tax paid in advance. Tax 30 on rs. Book profit of the company is rs.

Many of these investors do not pay tax on capital gains as tax treaties signed by india with some countries notably mauritius and singapore provide for an exemption from tax on gains from investing in stocks. Normal tax rate applicable to an indian company is 30 plus cess and surcharge as applicable.