The minimum alternate tax (MAT) is likely to become irrelevant with the removal of exemptions from direct taxes that corporates currently avail, according to Anita Kapur, chairperson, Central Board of Direct Taxes (CBDT). Her statement came during an interaction with reporters here on Tuesday.
This statement is likely to bring relief to companies that were miffed that the Budget was silent on minimum alternate tax. During the pre-Budget consultation, India Inc had pitched hard for the removal of the minimum alternate tax provision.
Kapur also addressed queries on how Central Board of Direct Taxes and the finance ministry would tackle the issue of black money through a Bill, which is likely to be presented during the Budget session of Parliament.
"This law will give us a reach over their assets. Earlier, there was an onus to prove that whether it is an undeclared income; now, even a non-declaration is liable to prosecution," said Kapur.
Under the new law, the ministry would give a compliance window giving an opportunity for tax payers to declare any foreign assets.
Any declaration would attract a tax demand and penalty; however, it would not lead to imprisonment or further prosecution.
"This will not be an amnesty scheme," said Kapur, adding the ministry would come out with the exemption list before the end of the year. Finance minister Arun Jaitley had said exemptions were the biggest source of litigation.