Economics · Corporate Taxation
In corporate taxation, Minimum Alternate Tax (MAT) was introduced to address a specific policy concern. The core purpose of MAT is to ensure that:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1depreciation is computed uniformly for tax and accounting purposes
- 2companies showing substantial book profits but low taxable income still pay a minimum level of tax✓
- 3firms are exempted from surcharge and cess in low-growth years
- 4companies may offset all book profits against future speculative losses
Correct answer
companies showing substantial book profits but low taxable income still pay a minimum level of tax
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