<h1>Income Tax Department Eases MAT Rules for Insolvent Companies, Allowing Full Loss Deduction from Book Profit.</h1> The Income Tax Department has eased the rules for Minimum Alternate Tax (MAT) for companies undergoing corporate insolvency proceedings. Previously, MAT was calculated on book profit after deducting the lesser of either loss brought forward or unabsorbed depreciation. Starting from the assessment year 2018-19, companies admitted for insolvency resolution can reduce their total loss brought forward, including unabsorbed depreciation, from book profit for MAT purposes. This change aims to alleviate the difficulties faced by these companies. Lenders have been seeking recourse through the National Company Law Tribunal under the Insolvency and Bankruptcy Code.