03 June 2010
Refer section 115JB of the Income Tax Act.
MAT is applicable only in case of companies, when the Income tax payable on taxable income is less than 15% (now 18% as amended by Finance Act 2010) of its book profit. Such book profit will be deemed as total income of the assessee and the tax payable the assessee on such total income shall be the amount of INcome tax at the rate of 15% (or 18%).
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