How many years can MAT credit be carried forward?

15 Assessment Years
Can tax credit be carried forward? Such tax credit shall be carried forward for 15 Assessment Years immediately succeeding the assessment year in which such credit has become allowable.

Can MAT credit be transferred?

However, while statutory provisions have been laid down to govern various aspects of these modes of business reorganisation, one significant aspect which is yet to be addressed through legislative intervention is whether Minimum Alternate Tax (‘MAT’) credit of the predecessor company can be transferred to the …

How can Mat credit be used?

The credit of MAT can be utilised by the company in the subsequent year(s). The set off in respect of brought forward MAT credit shall be allowed in the subsequent year(s) to the extent of the difference between the tax on its total income as per the normal provisions and as per the MAT provisions.

How do you present MAT credit on a balance sheet?

In the year of set-off of credit, the amount of credit availed should be shown as deduction from the provision of Taxation on the liabilities side of the balance sheet. The unavailed amount of MAT credit entitlement, if any, should continue to be presented under the head Loans & Advances .

Can AMT credit be carried forward?

The Prior-Year Minimum Tax Credit lets you get back money you paid as an AMT in a prior year. You can’t use the credit to reduce your AMT liability in the future. However, AMT credit carryforward is granted for unused portion of the credit to future years.

Is Mat applicable to individuals?

Applicability of MAT Minimum Alternate Tax or MAT is only applicable to companies and not to individuals, HUFs, partnership firms, etc. Rules pertaining to Section 115JA are applicable to foreign companies that generate profits through their operations in India.

How do I get my AMT credit back?

How do I claim the AMT credit?

  1. Review your tax returns from the year you exercised stock options to determine if you paid the AMT.
  2. Review your prior year tax returns to determine if you claimed the AMT credit in any previous year and determine if you have a credit leftover for this year.

When to carry forward and set off mat credit?

“Section 115JAA contains provisions regarding carrying forward and set off of tax credit in respect of Minimum Alternate Tax (MAT) paid by companies under section 115JB. Currently, the tax credit can be carried forward upto tenth assessment years.

How long can a company use mat credit?

However, in order to allow companies to use MAT credit in future years, he proposed to allow carry forward of MAT upto a period of 15 years instead of 10 years at present. Minimum Alternate Tax is at present levied as an advance tax.

Can a carry forward tax credit be set off?

“ (3A) The amount of tax credit determined under sub-section (2A) shall be carried forward and set off in accordance with the provisions of sub-sections (4) and (5) but such carry forward shall not be allowed beyond the tenth assessment year immediately succeeding the assessment year in which tax credit becomes allowable under subsection (1A).

What is the tax liability of mat credit?

Now, after setting off carry forward losses the total income liable to tax comes to Rs. 10 crs. The tax liability on the same comes to Rs. 3.32 crores and the MAT liability comes to Rs.3.38 crores. Is the above calculation correct??? Can i set off only 6.5 crs of my loss and bring the total income to Rs. 10.50 crs.

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