INCOME TAX · PRIVATE LIMITED COMPANIES
Minimum Alternate Tax: When Companies Pay MAT and How It Works
A plain-English guide to book profit, the 14% current rate and legacy MAT credit.
By Vyapar Setu Online | Private limited companies · 28 October 2026
Business Income Tax series · Private limited companies · Article 3 of 27
A company can show a healthy accounting profit but a much smaller taxable income. Minimum Alternate Tax, or MAT, checks whether a minimum tax should still be paid on adjusted book profit.
Read the year first: Reviewed 28 October 2026. Tax Year 2026–27 uses the Income-tax Act, 2025 and Rules, 2026. Returns for FY 2025–26 / AY 2026–27 use the earlier framework. This guide identifies relevant old section names and current changes; apply each limit to its stated period.
Keep reading, for free
Sign in with Google to read the full article.
Your name, email and sign-in dates are saved privately for reader account management. Privacy details
For learning and preparation. Verify the rules and official guidance for your period and circumstances before making a filing or tax decision.
Explore common questions →THE DISCUSSION
Questions & comments
Ask about this guide or share a useful experience. Comments are published immediately and may be removed by the owner if needed. Please leave out PAN, Aadhaar, bank details and other private information.
Sign in to comment. Your Google display name will be public with approved comments; your email will not. Privacy & comments
Loading comments…