Surcharge on Corporates Lowered to 5 Per Cent - Mat Increased Marginally : SEZ Developers Brought under MAT

In the General Budget 2011-12, surcharge on domestic companies has been reduced to 5 per cent from the present 7.5 per cent, continuing with the process of phasing out the surcharge. Rate of Minimum Alternate Tax (MAT) has been increased from the current rate of 18 per cent to 18.5 per cent 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.