Budget 2010-11 Minimum Alternate Tax Under Section 115JB increased from 15% to 18%

Under the existing provisions of section  115JB of the  Income Tax Act, a company  is required to pay a Minimum Alternate Tax (MAT) @ 15% on its book  profit, if the income-tax payable on the total  income, as  computed  under  the  Act  in  respect  of  any  previous  year  relevant  to  the  assessment year commencing on or after the 1st day of April, 2010, is less than 15%.

It is proposed to increase the MAT rate from 15% to 18%.

This amendment is proposed to take effect from the Assessment Year 2011-2012.