Concept of MAT

[Rahul Bagaria]

Can someone please beirf me about the concept of 'MAT'

AI Summary

Section 115JA Introduced to Ensure Zero Tax Companies Pay Minimum Alternate Tax (MAT) on Book Profits A query was raised regarding the concept of Minimum Alternate Tax (MAT). An expert explained that many companies reported book profits but paid no income tax due to nil or negative taxable income under the Income Tax Act. These companies, known as zero tax companies, still declared dividends. To address this, Section 115JA was introduced in 1997-98 to ensure such companies pay a minimum amount of tax, termed as MAT. Another participant expressed gratitude for the explanation.