Question

    MAT under Section 115JB is applicable

    when:
    A Book profit is lower than normal tax liability Correct Answer Incorrect Answer
    B Book profit is higher than normal tax liability Correct Answer Incorrect Answer
    C Company has no taxable income Correct Answer Incorrect Answer
    D Gross total income is negative Correct Answer Incorrect Answer

    Solution

    115JB ensures companies with high book profits but low taxable income pay at least Minimum Alternate Tax. Company must pay at least the MAT amount. • MAT is triggered specifically when book profit tax > normal tax liability.

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