Q. Consider the following pairs:
Tax TypeApplicability
IMinimum Alternate TaxCompanies, based on book profits
IIAlternate Minimum TaxNon-corporate assessees claiming certain deductions
IIIBoth MAT and AMTLevied at 15% plus surcharge and cess
In how many of the above rows is the given information correctly matched?
Answer: B
Notes:
Explanation:
Pair I: Correct. MAT under Section 115JB applies to all companies (including foreign) on book profits at 15%.
Pair II: Correct. AMT targets non-corporate entities like partnerships availing profit-linked deductions, to ensure minimum tax payment.
Pair III: Incorrect. The base rate is 15% for MAT and 9% for AMT (for non-companies), with applicable surcharge and cess added.
