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    Question

    A company has book profit of ₹20,00,000 for FY

    2024-25. Its normal tax liability computed under the Income Tax Act is ₹3,50,000. During computation of book profit for MAT, the following adjustments are made: • Depreciation as per Companies Act (₹2,00,000) is more than depreciation allowed under IT Act (₹1,50,000). • Other permanent disallowances (like CSR expenditure not allowed) = ₹50,000. The MAT rate is 15% (ignore surcharge). Compute the tax payable under MAT.
    A ₹3,15,000 Correct Answer Incorrect Answer
    B ₹3,50,000 Correct Answer Incorrect Answer
    C ₹3,00,000 Correct Answer Incorrect Answer
    D ₹3,75,000 Correct Answer Incorrect Answer
    E ₹3,25,000 Correct Answer Incorrect Answer

    Solution

    • MAT is payable only if it exceeds normal tax. • Here, MAT (₹3,15,000) < Normal Tax (₹3,50,000), so the company pays normal tax.

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