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We have different tax schemes in the income-tax based on the nature of assesses, industry type, activities dealt by the assessees. But the Minimum Alternate Tax behaves like a double-edged sword for companies’ growth. The fundamental intention of the provision is to loot the tax based on book profit when the companies do not qualify for payment of tax under the normal provisions of the Act.

While implementing these types of provisions in to the statute book the Government should think twice regarding the consequences on corporate assesses. During the previous Budget, the MAT percentage was increased from 7.5 per cent to 10 per cent which is again a hit on companies. At least this time the Government should either scrap this provision or bring some rational amendments that really boost the corporate assesses financial status.

Pramod Shrikanth D

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‘Job guarantee scheme for all rural districts soon’

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