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Minimum Alternate Tax Calculator

Work out minimum alternate tax instantly with clear inputs, formula shown and shareable results.

About Minimum Alternate Tax Calculator

Minimum alternate tax stops profitable companies paying nothing through incentives and accelerated allowances. The company pays the higher of normal tax and the minimum, and the excess becomes a credit usable in later years when normal tax is higher.

Formula

Minimum alternate tax

Payable = max(book profit × MAT rate, normal tax); credit = MAT - normal tax

Worked example

With the default values below, Minimum Alternate Tax Calculator returns Tax Actually Payable of $6,000,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Book Profitminimum 0
40,000,000
Minimum Alternate Tax Rateaccepts 1–30 %
15 %
Tax Under Normal Provisionsminimum 0
4,200,000

Results

Tax Actually Payable
$6,000,000.00
Minimum Alternate Tax
$6,000,000.00
Credit Available For Future Years
$1,800,000.00
Effective Rate On Book Profit
15.0000%

Step by step

  1. 1Values used
  2. 2Minimum alternate tax
  3. 3Tax Actually Payable= 6,000,000.00
  4. 4Minimum Alternate Tax= 6,000,000.00
  5. 5Credit Available For Future Years= 1,800,000.00
  6. 6Effective Rate On Book Profit= 15.0000

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.

Frequently Asked Questions

How long can the credit be carried?

Typically up to fifteen years, and only against the excess of normal tax over the minimum in those years.

Does it apply to companies opting for concessional rates?

Many regimes exempt them, since the concessional rate already comes with incentives withdrawn.

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