Minimum Alternate Tax (MAT)

Union Budget 2026-27 has proposed making Minimum Alternate Tax (MAT) a final tax and reducing its rate from 15% to 14%.

  • MAT was introduced in 1987 as a part of section 115JB of the Income Tax Act.
  • The MAT tax was introduced to target businesses that generate large profits but pay no tax under the normal provisions of the Income Tax Act.
  • This tax mechanism is not the same as personal income mechanism with different income tax slabs and rates as compared to those applicable to other tax payers.
  • However, with MAT, the companies must pay a fixed percentage ....
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