What is the meaning of AMT and MAT rate?

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 Full forms-

MAT- Minimum Alternative Tax

AMT- Alternate Minimum Tax

Objective of Levying MAT

Certain organizations before the MAT provisions were introduced were benefiting from different assessment exceptions, deductions, depreciation reliefs, and so forth to reduce or to keep away from tax payments despite already having benefits. To put an end to this, The Finance Act, of 1987 launched MAT or Minimum Alternate Tax, to ensure that all companies pay tax.

Provisions of AMT

Non-corporate citizens are entitled to AMT provisions in a personalized model. At the end of the day, MAT is relevant for organizations and AMT is relevant to individuals. The AMT arrangements are determined under Sections 115JC to 115JF.



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