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    Comparison Between MAT and AMT

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    Manoj Thakar
    MAT applies to companies if their income tax payable is less than the MAT on book profits, while AMT applies to limited liability partnerships if their regular tax payable is less than the AMT on adjusted total income. The key differences are that AMT applies to LLPs, uses an adjusted total income amount, and does not include a surcharge in its rate. Tax credits can be carried forward for both MAT and AMT for a maximum of 10 years from when the credit arose.

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    Comparison Between MAT and AMT

    Uploaded by

    Manoj Thakar
    2K views1 page
    MAT applies to companies if their income tax payable is less than the MAT on book profits, while AMT applies to limited liability partnerships if their regular tax payable is less than the AMT on adjusted total income. The key differences are that AMT applies to LLPs, uses an adjusted total income amount, and does not include a surcharge in its rate. Tax credits can be carried forward for both MAT and AMT for a maximum of 10 years from when the credit arose.

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    Comparison between MAT and AMT

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    MAT applies to companies if their income tax payable is less than the MAT on book profits, while AMT applies to limited liability partnerships if their regular tax payable is less than the AMT on adjusted total income. The key differences are that AMT applies to LLPs, uses an adjusted total income amount, and does not include a surcharge in its rate. Tax credits can be carried forward for both MAT and AMT for a maximum of 10 years from when the credit arose.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    2K views1 page

    Comparison Between MAT and AMT

    Uploaded by

    Manoj Thakar
    MAT applies to companies if their income tax payable is less than the MAT on book profits, while AMT applies to limited liability partnerships if their regular tax payable is less than the AMT on adjusted total income. The key differences are that AMT applies to LLPs, uses an adjusted total income amount, and does not include a surcharge in its rate. Tax credits can be carried forward for both MAT and AMT for a maximum of 10 years from when the credit arose.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Comparison between MAT and AMT under the Finance Bill 2011-2012

    MAT AMT
    Section 115JB(1) Chapter – XII-B Section 115JC Chapter XII-BA
    Provision A Company is required to pay a Where the regular tax payable for a previous year by
    minimum alternate Tax (MAT) on its a limited liability partnership is less than the alternate
    book profit, if the income tax payable minimum tax payable for such previous year, the
    on the total income, as computed under adjusted total income shall be deemed to be the
    the income tax act in respect of any total income of such limited liability partnership and
    previous year relevant to the LLP shall be liable to pay income tax on such total
    assessment year commencing on or income.
    st
    after 1 April 2011, is less than the
    MAT. “Adjusted total income shall be total income as
    increased by the deductions claimed under any
    section included in chapter VI-A C (deductions
    in respect of certain income and deductions claimed
    under section 10AA (Deduction available to SEZ
    units).

    Regular Tax means the tax payable under the income


    tax act for LLPs excluding the provisions of chapter
    115JC.
    Rate 18.5% + Surcharge (5%) + Education 18.5% + Education Cess (3% ) i.e 19.05%
    Cess (3%) + i.e 20%
    (Surcharge is not applicable on Limited Liability
    partnerships)
    Tax The tax credit to be allowed shall be the The tax credit is allowed to the extent of the excess of
    Credit difference of the Minimum Alternate tax the alternate minimum tax paid over the regular
    paid for any assessment year and the income tax.
    amount of tax payable by the assessee
    on his total income computed in
    accordance with the other provisions of
    this Act.
    Carrry Tax credit will be carried forward for a Tax credit will be carried forward for a maximum
    Forward maximum period of 10 years from the period of 10 years from the year in which such credit
    of Tax year in which such credit arose. arose.
    Credit

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