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<h1>MAT reduction for IFSC units deriving income in convertible foreign exchange alters the standard MAT computation.</h1> Section 115JB(7) provides that where the assessee is an IFSC unit deriving income solely in convertible foreign exchange, the MAT provision shall operate as if the general MAT rate in the principal sub section were substituted by the lower rate specified in sub section (7); IFSC and convertible foreign exchange are to be understood by reference to the Special Economic Zone Act, 2005 and RBI/FEMA treatment respectively.