Surcharge on Corporates Lowered to 5%, MAT increased

In the General Budget 2011-12, surcharge on domestic companies has been reduced to 5% from the present 7.5%, continuing with the process of phasing out the surcharge.

Rate of Minimum Alternate Tax (MAT) has been increased from the current rate of 18% to 18.5% of book profits to keep the effective rate of the MAT at the same level.

Presenting the Budget in the Lok Sabha today, the Union Finance Minister, Shri Pranab Mukherjee said that, MAT would be levied on developers of Special Economic Zones as well as units operating in SEZs.

Source : Equity Bulls

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