Minimum Alternate Tax
|Category|| : ||Governmental Rules & Regulations
|Country/Region|| : ||India
|Popularity|| : ||
What does MAT mean?
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 minimum alternate tax.