Minimum Alternative Tax computation in Saral Income Tax - F

Hi. In this post, we will see the Minimum Alternative Tax computation in Saral Income Tax.

Minimum Alternative Tax or MAT was introduced to reduce tax avoidance due to negligible or zero income by the companies.

To know more on MAT, read the below;

https://www.saraltaxoffice.com/blogs/minimum-alternate-tax

As MAT is applicable on for Companies, in Saral Income Tax, MAT option will be displayed only in case of ITR6 i.e. Income Tax Return for Companies.

1.Minimum Alternative Tax computation in Saral Income Tax-Companies

Firstly enter the income and deduction details in the related fields. On Normal tax being computed, go to MAT-115JB option in Tax Meter and enable the option Link to ITR.

2.Minimum Alternative Tax computation in Saral Income Tax-ITR

Note:

  • Link to ITR option will work only if the P&L details are entered.
  • Select the relevant option for the question asked on the screen before proceeding for MAT computation.

In case of any additions or deduction to this profit (as per the rule), enter the details in the fields given.

3.Minimum Alternative Tax computation in Saral Income Tax-Profit

If the financial statements are according to the Indian Accounting Standards and you would want to claim the applicable additions and deduction then enter the details in the fields given for the same.

4.Minimum Alternative Tax computation in Saral Income Tax-Statements

On entering all the details, the deemed income and the MAT will be calculated.

5.Minimum Alternative Tax computation in Saral Income Tax-MAT

Surcharge (if applicable) and Health & Edu. Cess will be calculated on this tax value.

The total tax value derived will be compared with the Normal tax computed and whichever is the higher will be considered as the tax payable for the company,

This completes the MAT calculation in Saral Income Tax.