For tax year 2026-27, at what rate is minimum alternate tax computed on the book profit of a company under section 206 of the Income-tax Act, 2025, before surcharge and cess, where the company is…
Question and options
For tax year 2026-27, at what rate is minimum alternate tax computed on the book profit of a company under section 206 of the Income-tax Act, 2025, before surcharge and cess, where the company is not a unit in an International Financial Services Centre?
14%
15%
18.5%
9%
Answer and explanation
Correct answer: A - 14%
Section 206 of the Income-tax Act, 2025, as amended by the Finance Act, 2026, computes minimum alternate tax at 14% of book profit for tax year 2026-27 for a company that is not an IFSC unit. The 15% figure is the earlier rate, 9% is the rate for qualifying IFSC units, and 18.5% was the rate before 2019.
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