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AMT & MAT (Sections 115JC / 115JB)

Alternate Minimum Tax for non-corporates (s.115JC) and Minimum Alternate Tax for companies (s.115JB), with surcharge, cess and the credit carried forward.

Switch calculator — current: AMT & MAT

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If yes, the rate is 9%.

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AMT & MAT: how it works and FAQs

FY 2025-26 (Income-tax Act 1961) and FY 2026-27 (Income-tax Act 2025) · Updated

How it works

MAT (Minimum Alternate Tax, s.115JB) makes a company pay at least a minimum tax on its book profit; AMT (Alternate Minimum Tax, s.115JC) does the same for non-companies on their adjusted total income.

MAT (Minimum Alternate Tax, s.115JB) makes a company pay at least a minimum tax on its book profit; AMT (Alternate Minimum Tax, s.115JC) does the same for non-companies on their adjusted total income. Each applies a fixed rate, adds surcharge (with marginal relief) and 4% cess, and compares the result with your normal tax. If the minimum tax is higher, you pay it now and carry the extra forward as a credit.

  1. MAT: book profit = net profit ± the listed adjustments; MAT = 15% of book profit (9% for an IFSC unit).
  2. AMT: adjusted total income (ATI) = total income + Part C deductions + s.10AA + s.35AD; AMT = 18.5% of ATI (9% IFSC; 15% co-operative society). Individuals with ATI up to ₹20 lakh pay nil.
  3. Add surcharge (with marginal relief) and 4% health-&-education cess to get the minimum tax.
  4. If the minimum tax exceeds your normal tax, the excess is payable now and carried forward as MAT/AMT credit.

Worked example

Minimum Alternate Tax = ₹7,80,000 (carried forward as credit if it exceeds normal tax).

A domestic company with book profit ₹50,00,000.

  1. MAT = 15% × 50,00,000 = ₹7,50,000.
  2. Cess = 4% × 7,50,000 = ₹30,000.

Minimum Alternate Tax = ₹7,80,000 (carried forward as credit if it exceeds normal tax).

Frequently asked questions

Who pays MAT vs AMT?

Companies pay MAT under s.115JB; other taxpayers (individuals, firms, LLPs, co-operatives, etc.) pay AMT under s.115JC.

What is MAT/AMT credit?

The amount by which the minimum tax exceeds your normal tax. It can be carried forward (up to 15 years) and set off when your normal tax is higher.

Every figure the calculator shows lists the sections it relies on under “Legal basis”. For guidance only — not tax advice.