GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Minimum Alternate Tax
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Maximum Alternate Tax
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Minimum Alternate Time
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Maximum Alternate Time
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Detailed explanation-1: -MAT stands for Minimum Alternate Tax and AMT stands for Alternate Minimum Tax. Initially the concept of MAT was introduced for companies and progressively it has been made applicable to all other taxpayers in the form of AMT.
Detailed explanation-2: -Minimum Alternate Tax or MAT is a provision that is in direct tax laws which is for companies, it is the provision for limit the tax exemptions which is availed by the companies. The provision requires that the company shall not avail more exemption and they should pay at least minimum amount of tax to the government.
Detailed explanation-3: -When minimum alternate tax is applicable? MAT is applied when the income of person which is to be taxed is found to be less than 15.5 per cent ( (plus surcharge and cess as applicable) of the book profit under Companies Act 2013; under Income Tax act provisions.