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MAT under Section 115JB is computed at:
A20% of total income
B30% of book profit
C15% of book profit
D25% of taxable income
Answer & Solution
Correct answer: C. 15% of book profit
1. Section 115JB applies to companies; tax = higher of normal tax or 15% of book profit.
2. 15% rate effective from AY 2020-21 (reduced from 18.5% by Finance Act 2019).
3. MAT not applicable to companies opting Section 115BAA or 115BAB.
_Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
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