MAT Credit MAT credit arises when a company’s tax liability under Minimum Alternate Tax (MAT) exceeds the tax liability under normal provisions of the Income-tax Act. The excess amount is treated as MAT credit, which can be carried forward for up to 15 assessment years and adjusted against future tax liabilities under normal provisions. Key… Read More »
MAT Computation for Ind as Compliant Companies Ind AS-compliant companies calculate book profit for MAT as per Section 115JB, adjusted by specified additions and deletions. These adjustments account for items included in the Statement of Profit and Loss and Other Comprehensive Income (OCI). Key Adjustments for Book Profit Calculation a)OCI Items Not Reclassified to Profit or… Read More »
TDS on purchase of goods new section 393 under Income Tax Act 2025 TDS on purchase of goods new section 393 under Income Tax Act 2025 Under the Income-tax Act, 2025, Tax Deducted at Source (TDS) on the purchase of goods (formerly covered under Section 194Q) is governed by Section 393(1) [Table: Sl. No. 8(ii)].… Read More »
Calculation of Book Profit for MAT Book profit for MAT is determined by adjusting net profit as per the statement of profit and loss in accordance with the Companies Act, by making specified additions (positive adjustments) and deletions (negative adjustments). Positive Adjustments The following items, if debited to the statement of profit and loss, must… Read More »
Minimum Alternate Tax (MAT) Introduction MAT ensures that companies pay a minimum amount of tax if their tax liability under normal provisions of the Income-tax Act is less than 15% of their book profit. This tax is applicable even if a company reports nil income or has tax losses. Applicability MAT applies to all companies,… Read More »
ITR filing for NRI AY 2026-27 ! New Income Tax Rules in India For Assessment Year (AY) 2026-27 (Financial Year 2025-26), Non-Resident Indians (NRIs) must file an Income Tax Return (ITR) if their total income in India exceeds the basic exemption limit. 1. Key Deadlines for ITR filing for NRI AY 2026-27 For Assessment Year… Read More »
Interest for Default in Payment of Advance Tax Introduction: Interest under Section 234B is levied if the assessee fails to pay advance tax or if the amount paid is less than 90% of the assessed tax. If no advance tax liability exists, this section does not apply. Key Provisions: o Levy of Interest: Applicable when advance tax paid… Read More »
Interest for Default in Furnishing Return Introduction Interest at the rate of 1% per month or part thereof is levied on outstanding tax liability if an assessee fails to furnish the Income-tax return within the due date or does not file it at all. Key Provisions Applicability Interest underSection 234A applies when: o The return is… Read More »
Interest and Fees under the Income-tax Act Introduction Interest and fees are compensatory charges levied for defaults under the Income-tax Act. Interest is applied for delays in tax payments, while fees are levied for non-compliance with filing requirements. These are charged automatically without prior notice. Default in filing statements Income-tax Return Filing o Interest (Section 234A):… Read More »
Tax rates for Assessment Year 2026-27 Total income of an assessee is taxable either as per applicable normal tax rates or as per special tax rates. The special tax rates have been prescribed in the relevant provisions of the Income-tax Act, while as normal tax rates are prescribed every year under First Schedule of the Finance Act.… Read More »