Section 115JB → Section 130
Special provision for payment of tax by certain companies (Minimum Alternate Tax - MAT)
Quick Answer
Section 115JB of the Income Tax Act, 1961 (Special provision for payment of tax by certain companies (Minimum Alternate Tax - MAT)) corresponds to Section 130 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 115JB
Section 115JB of the 1961 Act sets out the rules on special provision for payment of tax by certain companies (minimum alternate tax - MAT). Mandates companies to pay at least 15% tax on their 'Book Profit' if their normal tax liability is lower due to heavy deductions.
The new code maps this to Section 130: the provision is retained and renumbered as Section 130 of the Income-tax Act, 2025, applying from 1st April 2026. Retained, but its applicability is drastically reduced since companies opting for the default 22% regime (Section 115BAA) are entirely exempt from MAT.
On the ground, changes to Section 115JB carry a High impact. Historically the biggest corporate tax section, now slowly phasing out of relevance.
Sec 115JB
Provision Summary
Mandates companies to pay at least 15% tax on their 'Book Profit' if their normal tax liability is lower due to heavy deductions.
Sec 130
Provision Summary
Retained, but its applicability is drastically reduced since companies opting for the default 22% regime (Section 115BAA) are entirely exempt from MAT.
Key Changes & Highlights
- MAT is now practically applicable only to a small subset of companies still claiming old sunset deductions (like SEZ holidays under 10AA).
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Frequently Asked Questions
What does Section 115JB of the Income Tax Act 1961 deal with?
Section 115JB of the Income Tax Act, 1961 covers special provision for payment of tax by certain companies (minimum alternate tax - MAT). Mandates companies to pay at least 15% tax on their 'Book Profit' if their normal tax liability is lower due to heavy deductions.
Where does Section 115JB of the ITA 1961 go under the Income-tax Act, 2025?
Section 115JB of the Income Tax Act, 1961 maps to Section 130 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained, but its applicability is drastically reduced since companies opting for the default 22% regime (Section 115BAA) are entirely exempt from MAT.
Why does the change to Section 115JB matter for taxpayers?
The transition impact for Section 115JB is rated High. Historically the biggest corporate tax section, now slowly phasing out of relevance.
What are the key changes to Section 115JB under the Income-tax Act, 2025?
MAT is now practically applicable only to a small subset of companies still claiming old sunset deductions (like SEZ holidays under 10AA). These points are specific to Section 115JB (Special provision for payment of tax by certain companies (Minimum Alternate Tax - MAT)).
Disclaimer: This mapping of Section 115JB (Special provision for payment of tax by certain companies (Minimum Alternate Tax - MAT)) to Section 130 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 115JB is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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