Schedule MATC – Computation of Tax Credit under section 115JAA AY 2026-27
‘Schedule MATC’ in the Income Tax Return (ITR) form is applicable to companies that have paid Minimum Alternate Tax (MAT) under Section 115JB and are eligible to claim tax credit under Section 115JAA. This tax credit arises when MAT paid in a previous year exceeds the regular income tax payable and is allowed to be carried forward and adjusted in future years.
The computation begins by reporting the tax liability under Section 115JB and the tax liability under regular provisions for the current assessment year. If the regular tax is higher than MAT, the difference represents the amount against which MAT credit can be utilised during the year.
Next, the schedule captures year-wise details of MAT credit brought forward from earlier assessment years. For each year, the assessee must report the gross MAT credit, the credit already set off in earlier years, the balance brought forward to the current year, the credit utilised during the current year, and the balance MAT credit carried forward.
The MAT credit utilised during the current year is restricted to the lower of:
- The difference between regular tax and MAT, and
- The available MAT credit brought forward.
- Section 115JAAof Income-tax Act, 1961
As per Section 115JAA, the MAT is payable by the Companies whose tax on total income is less than 15% of ‘book profit’. If tax payable as per provisions of MAT exceeds the tax calculated as per normal provision, the excess amount of the tax paid is considered as MAT Credit. Such Credit can be carried forward for 15 years to set-off against tax payable as per normal provision in future years.
This schedule applies to ITR-6.