Aalekh
All calculators
For Chartered AccountantsRates reviewed September 2026

MAT and AMT Calculator: Book Profit and Adjusted Income

A MAT calculator works out minimum alternate tax on book profit where a company's normal tax liability falls below the statutory floor, and an AMT calculator does the same for non-corporate taxpayers on adjusted total income. Both now live in section 206 of the Income-tax Act, 2025, which consolidated section 115JB (MAT) and section 115JC (AMT) of the Income-tax Act, 1961 from 1 April 2026. The accountant's report is Form No. 66, which replaced Form 29B.

The Finance Act, 2026 made the most significant change to MAT in two decades. From tax year 2026-27 the MAT rate falls from 15 per cent to 14 per cent of book profit, and MAT paid becomes a final tax: a company that remains outside the concessional regime generates no fresh MAT credit and its accumulated credit lapses. A company that moves to the concessional regime in section 200 (section 115BAA) or section 201 (section 115BAB) may use its accumulated credit, but only up to 25 per cent of the tax liability for the year, carried forward for up to 15 years from the year the credit arose. Companies that have already opted for those regimes remain outside MAT altogether.

AMT was left untouched. It applies at 18.5 per cent of adjusted total income for non-corporate taxpayers claiming specified profit-linked deductions, 15 per cent for co-operative societies and 9 per cent for units in an International Financial Services Centre earning income solely in convertible foreign exchange. Individuals, Hindu undivided families, associations of persons and bodies of individuals are outside AMT where adjusted total income does not exceed ₹20 lakh; firms and limited liability partnerships have no such threshold. AMT credit continues to be available and can be carried forward for 15 tax years.

MAT / AMT Calculator

A company in the concessional regime is outside MAT altogether.

Book profit under section 206(1) for a company, adjusted total income under section 206(2) otherwise.

₹

Tax on total income including surcharge and the 4% cess.

₹

Applied only where the minimum tax base exceeds ₹1 crore.

%
₹

Tax payable

₹62,31,680

MAT at 14% exceeds the normal tax

Minimum tax before surcharge and cess14% of ₹4 crore
₹56,00,000
Surcharge and cesssurcharge 7%, cess 4%
₹6,31,680
MAT for the yearBook profit under section 206(1)
₹62,31,680
Normal tax under the regular provisions
₹12,48,000
Higher of the two, payableMAT
₹62,31,680
Credit generated this yearMAT is a final tax from tax year 2026-27
₹0
Brought forward credit utilisedout of ₹0 brought forward
₹0
Closing credit balancecarried forward for up to 15 tax years
₹0
  • From tax year 2026-27 minimum alternate tax is a final tax. No fresh MAT credit is generated, and accumulated credit lapses for a company that stays outside the concessional regime.
  • Surcharge is applied because the base exceeds ₹1 crore.
  • The accountant's report is Form No. 66, which replaced Form 29B.

The formula

MAT = Book Profit × 14% | AMT = Adjusted Total Income × 18.5% | Tax payable = Higher of (Normal tax, MAT or AMT)

Book Profit
Net profit as shown in the statement of profit and loss prepared under the Companies Act, 2013, adjusted for the specified additions and deductions in section 206(1), with further adjustments for companies reporting under Ind AS.
Adjusted Total Income
Total income of a non-corporate taxpayer increased by the profit-linked deductions claimed, computed under section 206(2), formerly section 115JC.
Normal tax
Tax on total income computed under the regular provisions of the Income-tax Act, 2025, including surcharge and cess.
MAT credit
The excess of minimum tax over normal tax in an earlier year. Under the Finance Act, 2026 no fresh MAT credit arises from 1 April 2026; accumulated credit is usable only on moving to the concessional regime, capped at 25 per cent of the year's liability.

The 14 per cent and 18.5 per cent rates are base rates: applicable surcharge and the 4 per cent health and education cess are added on top.

How to calculate it

  1. 1

    Check whether the minimum tax provisions apply at all

    A company that has opted for the concessional regime in section 200 or section 201, formerly sections 115BAA and 115BAB, is outside MAT. A non-corporate taxpayer who claims no profit-linked deduction is outside AMT, as is an individual, HUF, AOP or BOI whose adjusted total income does not exceed ₹20 lakh.

  2. 2

    Start from the statement of profit and loss

    For MAT, begin with net profit as shown in the statement of profit and loss prepared under the Companies Act, 2013 for the same year, using the same accounting policies and standards used for the annual accounts laid before the members.

  3. 3

    Apply the specified additions and deductions

    Add back items such as income tax paid or provided, amounts carried to reserves, provisions for unascertained liabilities and provisions for diminution in the value of assets. Deduct items such as amounts withdrawn from reserves that were previously added back, and the lower of brought forward loss or unabsorbed depreciation as per books. Companies on Ind AS make the further adjustments prescribed for them.

  4. 4

    Compute the minimum tax and compare

    Apply 14 per cent to book profit, or 9 per cent for an eligible IFSC unit, then add surcharge and the 4 per cent cess. Compare against the normal tax liability on total income. The higher of the two is payable.

  5. 5

    Do the same for AMT where applicable

    Take total income, add back the profit-linked deductions claimed to arrive at adjusted total income, apply 18.5 per cent, 15 per cent for a co-operative society or 9 per cent for an eligible IFSC unit, and add surcharge and cess. Compare with the regular tax liability.

  6. 6

    Deal with credit correctly

    Record AMT credit for the excess of AMT over regular tax and carry it forward for up to 15 tax years. For MAT, note that from tax year 2026-27 no new credit arises and accumulated credit can be set off only on moving to the concessional regime, restricted to 25 per cent of that year's liability.

Minimum tax rates for FY 2026-27 (AY 2027-28) under section 206

Minimum tax rates for FY 2026-27 (AY 2027-28) under section 206
TaxpayerMinimum tax baseBase rate
Company outside the concessional regimesBook profit under section 206(1)14%
Company that is an eligible IFSC unitBook profit under section 206(1)9%
Company under section 200 or 201 (115BAA or 115BAB)Minimum tax not applicableNil
Co-operative societyAdjusted total income under section 206(2)15%
Firm, LLP and other non-corporate taxpayersAdjusted total income under section 206(2)18.5%
Non-corporate eligible IFSC unitAdjusted total income under section 206(2)9%
Individual, HUF, AOP or BOI with adjusted total income up to ₹20 lakhAMT not applicableNil

Worked example

Domestic company, default regime, tax year 2026-27
Outside section 200
Book profit under section 206(1)
₹4,00,00,000
Total income under the normal provisions
₹40,00,000
Applicable rates
Normal 30%, MAT 14%, surcharge 7%, cess 4%
  • Normal tax = ₹40,00,000 × 30% = ₹12,00,000, no surcharge as total income is below ₹1 crore
  • Normal tax with cess = ₹12,00,000 + (₹12,00,000 × 4%) = ₹12,48,000
  • MAT on book profit = ₹4,00,00,000 × 14% = ₹56,00,000
  • Surcharge at 7% as book profit exceeds ₹1 crore = ₹3,92,000, giving ₹59,92,000
  • Cess at 4% = ₹2,39,680
  • MAT liability = ₹59,92,000 + ₹2,39,680 = ₹62,31,680
  • MAT of ₹62,31,680 exceeds normal tax of ₹12,48,000, so MAT is payable

Tax payable = ₹62,31,680, treated as a final tax with no MAT credit generated for the year

Frequently asked questions

The MAT rate is 14 per cent of book profit for tax year 2026-27 onwards, reduced from 15 per cent by the Finance Act, 2026, plus applicable surcharge and the 4 per cent health and education cess. An eligible unit in an International Financial Services Centre deriving income solely in convertible foreign exchange pays 9 per cent. For FY 2025-26, for which returns are being filed now, the rate remains 15 per cent.
MAT is now section 206(1) of the Income-tax Act, 2025, which replaced section 115JB of the Income-tax Act, 1961 from 1 April 2026. AMT is section 206(2), replacing section 115JC. Both sit in the part of Chapter X dealing with special provisions for minimum alternate tax and alternate minimum tax, and the accountant's report is Form No. 66 in place of Form 29B.
No. A domestic company that has exercised the option under section 200 of the Income-tax Act, 2025, formerly section 115BAA, or section 201, formerly section 115BAB, is excluded from the minimum alternate tax provisions. That has been the position since those regimes were introduced and the Income-tax Act, 2025 carried it forward unchanged.
Accumulated MAT credit can be carried forward for 15 years from the year in which it arose. Under the Finance Act, 2026 the practical position changed sharply: from 1 April 2026 no new MAT credit is generated, and accumulated credit can be utilised only by a company that moves to the concessional regime, capped at 25 per cent of the tax liability for the relevant year. A company that stays outside the concessional regime sees its accumulated credit lapse.
Adjusted total income is the total income of a non-corporate taxpayer increased by the profit-linked deductions claimed for the year, computed under section 206(2) of the Income-tax Act, 2025. The add-backs are what distinguish AMT from regular tax, so a taxpayer who claims no such deduction generally has adjusted total income equal to total income and no AMT exposure.
Yes, where the LLP claims the specified profit-linked deductions. The ₹20 lakh adjusted total income threshold is available only to individuals, Hindu undivided families, associations of persons and bodies of individuals. Firms and limited liability partnerships have no minimum threshold, so AMT at 18.5 per cent can apply irrespective of the size of the adjusted total income.
Start with net profit as shown in the statement of profit and loss prepared under the Companies Act, 2013, then apply the additions and deductions listed in section 206(1). Typical add-backs are income tax paid or provided, transfers to reserves, provisions for unascertained liabilities and provisions for diminution in the value of assets. Typical deductions are amounts withdrawn from reserves previously added back and the lower of brought forward loss or unabsorbed depreciation as per the books of account.

Sources

Rates and rules on this page come from the following. This is a working aid, not professional advice: confirm anything material with your Chartered Accountant before you act on it.

Stop re-keying these figures

Aalekh runs this calculation on your actual client data, pulls the underlying ledgers straight from Tally, and carries the result through to the financial statements and the return.

Get StartedBook a demo

Related calculators