28 October 2009
MAT is minimum alternative tax section 115JA was replaced by section 115JB for assessment years 2001-02 onwards. As per this section, your normal tax payable is to be compared with 7.5% of your book profits and you are required to pay the higher of the two. From assessment year 2007-2008 onwards your normal tax payable will be compared with 10% of book profits are your required to pay the higher of the two. Credit for MAT paid can be carried forward under section 115JAA for 7 years.
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