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CS Professional · Advanced Direct Tax Laws and Practice · Computation of Total Income, Tax Liability and Filing of Return of Companies

Which of the following companies is expressly outside the application of the MAT provisions of section 206(1) under clause (q)?

A company having income from life insurance business referred to in section 194(1) is excluded from MAT under section 206(1)(q)(i). Persons who have exercised the option under section 200(5) or 201(2) are also excluded. Ordinary companies, even with nil total income and positive book profit, remain subject to MAT.

  1. AA company having income from life insurance business referred to in section 194(1)Correct
  2. BA company with income from export of software
  3. CA listed public company paying dividends
  4. DA company with a nil total income but positive book profit

Explanation

Clause (q)(i) excludes a company having income from life insurance business referred to in section 194(1) (Table Sl. No. 6), and also persons who exercised the option under section 200(5) or 201(2). The other options are ordinary companies to which MAT applies when regular tax is below MAT.

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