440
June 29 To July 5, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 28Clarifications needed on
availability of extended period
for MAT Credit
Introduction
1.With a view to provide relief to the assessees of paying
Minimum Alternate Tax (MAT), the Finance Act, 2017 amend-
ed section 115JAA of the Income-tax Act, 1961 to provide
that the tax credit in respect of MAT paid by companies
under section 115JB of the Act can be carried forward up
to fifteenth assessment year immediately succeeding the as-
sessment year in which such tax credit becomes allowable.
This amendment has been made effective from 1 April, 2018
from A.Ys. 2018-19 onwards.
Before this amendment, uptill A.Y. 2017-18, MAT credit was
allowed to be carried forward only for ten assessment years.The relevant provisions of section 115JAA, as amended
by the Finance Act, 2017
2.“(3A) The amount of tax credit determined under sub-sec-
tion (2A) shall be carried forward and set off in accordance
with the provisions of sub-sections (4) and (5) but such carry
forward shall not be allowed beyond the fifteenth assessment
year immediately succeeding the assessment year in which
tax credit becomes allowable under subsection (1A).”
“(1A) Where any amount of tax is paid under sub-section
(1) of section 115JB by an assessee, being a company
for the assessment year commencing on the 1st day of
April, 2006 and any subsequent assessment year, then,
credit in respect of tax so paid shall be allowed to
him in accordance with the provisions of this section.”MAYANKMOHANKA
CA