CBDT relaxes norms for MAT on firms facing insolvency

To minimise genuine hardships faced by affected companies, said the Central Board of Direct Taxes

The Income Tax Department on Saturday relaxed norms for levy of Minimum Alternate Tax (MAT) on companies facing corporate insolvency proceedings.
 

According to Section 115JB of the Income Tax Act, MAT is levied on book profit after deducting the amount of loss brought forward or unabsorbed depreciation, whichever is less.

“With effect from assessment year 2018-19 (FY2017-18), in case of a company, against whom an application for corporate insolvency resolution process has been admitted by the adjudicating authority under...the IBC, the amount of total loss brought forward (including unabsorbed depreciation) shall be allowed to be reduced from the book profit for