MAT Credit accumulated till 31-03-2026 Transition - when new regime to be Opted?

[MUKUNDA SHIVA]

Is it mandatory to opt for section 115BAA (206 of new act) in FY 2026-27 itself to preserve the MAT credit?

Or, if a company continues under the old regime in FY 2026-27 and shifts to section 115BAA (206 of new act) in a later year, will the MAT credit (accumulated up to 31 March 2026) still be available for utilisation at that point (within the 15-year limit)? Or would it lapse if the option is not exercised in FY 2026-27?

AI Summary

MAT credit transition under section 115BAA: whether delayed option in a later year affects utilisation within the prescribed period. The issue concerns the treatment of MAT credit accumulated up to 31 March 2026 when a company considers moving to the concessional tax regime under section 115BAA. The question is whether the option must be exercised in FY 2026-27 itself to preserve the credit, or whether the company may remain under the old regime for that year and opt for section 115BAA in a later year while still retaining the accumulated MAT credit for utilisation within the prescribed 15-year period.