Budget 2012: Highlights - Minimum Alternative Tax (MAT)

Sec. 115JB: This Sec. provides that if the income tax payable on the total income of a Company is less that 18.5% of its book profit then, the book profit shall be deemed to be the total income of the Company and income tax @ 18.5% shall be payable on the same.

An amendment has been introduced whereby every assessee Company shall prepare its profit and loss accounts in accordance with Part II of Schedule IV to the Companies Act, 1956 and not Part II and III of Schedule IV as was previously provided.

The amendment also states that any insurance or a banking company or any company engaged in the generation or supply of electricity (Sec. 211 Company), shall prepare its profit and loss accounts in accordance with the provisions of the Act governing such a Company.