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 utilisation under section 115BAA lapses only on opting into the concessional regime, not by delaying the switch.
Optional taxation under section 115BAA does not have to be exercised in a particular year to preserve MAT credit. A company may continue under the regular tax regime and utilise brought forward MAT credit under section 115JAA within the 15-year carry forward period. Once section 115BAA is exercised, any unutilised MAT credit on that date lapses and cannot be carried forward or set off thereafter.