Direct Tax Laws & International TaxationQuestion 5833 of 2
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Under Section 115JB (Minimum Alternate Tax - MAT), what is the current base rate of MAT on Book Profits for domestic companies (excluding surcharge and cess)?

Options

A18.5%
B15.0%
C22.0%
D10.0%
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Correct Answer

✅ Option B — 15.0%

All Options:

  • A18.5%
  • B15.0% ✓
  • C22.0%
  • D10.0%

Detailed Solution & Explanation

Correct Answer: Option **B** Explanation: As per Section 115JB(1) of the Income-tax Act, 1961, the rate of Minimum Alternate Tax (MAT) on book profit of a company is 15% (reduced from the earlier 18.5% with effect from AY 2020-21). Surcharge and Health & Education Cess (4%) are added applicable to the base rate.

More Questions from Direct Tax Laws & International Taxation

In International Taxation, under Section 92C, which of the following is NOT one of the specified methods for determination of Arm's Length Price (ALP)?

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