Question

    A domestic company reports ₹2 crore as book profit. As

    per section 115JB, if its normal tax liability is ₹12 lakh, what is the Minimum Alternate Tax (MAT) payable?
    A ₹12 lakh Correct Answer Incorrect Answer
    B ₹20 lakh Correct Answer Incorrect Answer
    C ₹30 lakh Correct Answer Incorrect Answer
    D ₹15.6 lakh Correct Answer Incorrect Answer

    Solution

    MAT = 15% of book profit + surcharge + cess. Basic = 15% of ₹2 crore = ₹30 lakh. Including cess/surcharge = approx. ₹15.6 lakh minimum payable. If normal tax < MAT, then MAT applies.

    Practice Next