MAT on long term Capital Gain

[Common Issues]

Is Minimum alternate tax (MAT) applicable on shares (long term assets) on which STT was already paid.

AI Summary

MAT Applies to Long-Term Capital Gains on Shares Even with STT Paid, Exemption Under Section 10(38) Not Applicable. A user inquired whether Minimum Alternate Tax (MAT) applies to long-term capital gains on shares where Securities Transaction Tax (STT) has already been paid. The response clarified that according to Section 115JB, while calculating net profit for MAT purposes, exempt income under Sections 10, 11, and 12 is deducted from total income. However, Section 10(38), which pertains to long-term capital gains on shares, is not covered. Therefore, MAT is applicable to these shares despite the STT payment.