What is Minimum Alternate Tax (MAT) for Startups?
Nexa Consultancy | Startup & Finance Glossary
MAT is a tax levied on companies that show high profits in their books but have low taxable income due to various exemptions and deductions. The tax is calculated on the "book profit". However, DPIIT-recognized startups are often exempt from MAT for a certain period.
Startup Example: A profitable startup has a low taxable income due to high depreciation claims. It may still be liable to pay MAT on its book profits unless it is eligible for specific startup exemptions.
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