FM Sitharaman ends MAT confusion: Reduced rate to be applicable from FY20

Reduced rate applicable from current FY; final call on fiscal deficit will be taken at Revised Estimate stage

The lower minimum alternate tax (MAT) rate announced as part of the corporation tax rate cuts in September will be applicable from the current fiscal year (2019-20 or FY20), Finance Minister Nirmala Sitharaman clarified on Monday in the Lok Sabha after an error in the Taxation Amendment Bill spooked companies.

For the second time in less than a week, Sitharaman also spoke of the challenges in maintaining fiscal discipline, while comparing the Modi government’s fiscal record with that of the Manmohan Singh government.  Sitharaman said a final call on the fiscal deficit will be taken at the Revised Estimate stage.