Discussion
Minimum Alternative Tax (MAT) under sec. 115 JB of the income tax act is applicable on
Answer: C
Correct answer: Certain companies
Minimum Alternate Tax under section 115JB applies to certain companies, not to all. It was introduced to catch profitable companies that reduced their taxable income to nil or near nil through exemptions, deductions and accelerated depreciation, by levying a minimum tax on book profit instead.
Several categories are outside its scope, including companies in specified sectors and those opting for the concessional tax régimes under sections 115BAA and 115BAB. Partnership firms and associations of persons are not companies at all, and are dealt with by the separate Alternate Minimum Tax provisions.
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