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What is MAT? Understanding Minimum Alternate Tax in India (2025 Guide)
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What is MAT? Understanding Minimum Alternate Tax in India (2025 Guide)
What is MAT? Minimum Alternate Tax (MAT) is a provision in Indian tax law to ensure that companies that earn substantial profits and declare large dividends to shareholders also pay a minimum amount of tax to the government, even if they use tax exemptions, deductions, and incentives to reduce their taxable income. In other words, MAT acts as a taxation floor. Even if a company’s normal tax liability is low (or nil) due to exemptions, MAT ensure…
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