Mat Credit Full Form

Such tax credit shall be carried forward for 15 assessment years immediately succeeding the assessment year in which such credit has become allowable.

Mat credit full form. 2 whether mat credit can be considered as an asset. Minimum alternate tax mat was introduced in the direct tax system to make sure that companies having large profits and declaring substantial dividends to shareholders but who were not contributing to the govt by way of corporate tax by taking advantage of the various incentives and exemptions provided in the income tax act pay a fixed percentage of book profit as. However applicable mat 18 5 of rs 8 lac rs. If a company has mat credit of rs.

10 lakh while that as per the. What does mat mean. A tax credit scheme is introduced by which mat paid can be carried forward for set off against regular tax payable during the subsequent fifteen years period subject to certain conditions as under when a company pays tax under mat the tax credit earned by it shall be an amount which is the difference between the amount payable under mat and. So excess tax payable will be rs 1 48 000 rs.

Under accounting standard as 22 discussed above though mat credit is not a deferred tax asset an expectation regarding future economic benefit arises in the form of the adjustment of the future income tax liability that arises within a specified time period. This is with effect from ay 2018 19 prior to which mat could be carried forward only for a period of 10 ays. 1 lakh the tax liability as per the normal provisions for fy 2019 20 is rs. Rs 14 43 000 rs 12 48 000 rs 1 95 000.