MAT-ter of time: Credit to be phased out
Currently, companies opting for the old regime pay MAT on book profits if it exceeds their normal income-tax liability, with the excess eligible to be carried forward as MAT credit for up to 15 years. Govt now plans to discontinue fresh MAT credit in the old regime, even as it lowers the MAT rate. Going forward, MAT paid under the old regime will be treated as final tax, with no new MAT credit allowed.
Currently, companies opting for the old regime pay MAT on book profits if it exceeds their normal income-tax liability, with the excess eligible to be carried forward as MAT credit for up to 15 years. Govt now plans to discontinue fresh MAT credit in the old regime, even as it lowers the MAT rate. Going forward, MAT paid under the old regime will be treated as final tax, with no new MAT credit allowed.
