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Section 115JAA, AY 2026-27

MAT and AMT Credit Set-Off Calculator

Reviewed by CA Nikhil Gupta · Last reviewed 11 October 2026

Enter an earlier credit, its year of origin, this year’s regular tax and minimum tax to see the credit that can be used and what is left.

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What this calculator does

Work out how much brought-forward MAT or AMT credit can be set off against regular tax, with the 15-year expiry and the excess-over-minimum-tax ceiling.

What you enter

Results are an educational screen based on the figures entered and the rule summarised above. They are not advice and do not replace the current Act, rule or accounting standard, or professional review of the facts.

Common questions

How long can MAT credit be carried forward?

Up to 15 assessment years after the year in which it arose.

Can MAT credit be used against tax under the new concessional regimes?

Credit generally cannot be used while the company pays tax under a concessional regime such as section 115BAA; check the transition rules for your year before relying on a brought-forward balance.

Does the set-off reduce regular tax below minimum tax?

No. Credit can only be used to the extent regular tax exceeds the minimum tax for the year.

How the calculation works

  1. Set-off ceiling = regular tax − minimum tax (nothing if regular tax is lower).
  2. Credit used = the lower of the credit available and the ceiling, unless the 15-year carry-forward period has expired.
  3. Credit left = credit available − credit used.

Background and professional notes

Finin2min: the 2-minute answer

The most common error is to subtract the entire MAT balance from the current tax bill. Only an eligible carried-forward balance can be utilised and the set-off is restricted by the excess of regular tax over the applicable minimum tax. The original credit vintage and year-wise utilisation records must be preserved.

Worked Indian example

For ₹4.50 lakh regular tax and ₹4.00 lakh minimum tax, the arithmetic ceiling is ₹50,000. A ₹1 lakh eligible credit balance does not make the entire ₹1 lakh deductible in the same assessment year.

Important applicability and tax-year distinctions

The framework changed during the 2025 Act transition. Track original year, past utilisation and any change in statutory eligibility. Do not use this worksheet to create or certify fresh MAT/AMT credit.

Practical FAQs

The most common error is to subtract the entire MAT balance from the current tax bill. Only an eligible carried-forward balance can be utilised and the set-off is restricted by the excess of regular tax over the applicable minimum tax. The original credit vintage and year-wise utilisation records must be preserved. The framework changed during the 2025 Act transition. Track original year, past utilisation and any change in statutory eligibility. Do not use this worksheet to create or certify fresh MAT/AMT credit.

Assumptions and what this calculator does not cover

Frequently asked questions

How long can MAT credit be carried forward?

Up to 15 assessment years after the year in which it arose.

Can MAT credit be used against tax under the new concessional regimes?

Credit generally cannot be used while the company pays tax under a concessional regime such as section 115BAA; check the transition rules for your year before relying on a brought-forward balance.

Does the set-off reduce regular tax below minimum tax?

No. Credit can only be used to the extent regular tax exceeds the minimum tax for the year.

Official sources and further reading

Rates and rules were checked against these sources on 11 October 2026. Notifications and standards change; confirm on the official site before you file, book or advise.

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Educational working tool. Results follow the scope and assumptions above and the figures you enter; they are not tax, audit, legal or accounting advice. Tax and accounting treatment depends on facts and on the law or standard in force for the relevant period, so verify the official source or consult a professional before you rely on a result.

Last reviewed: 11 October 2026
© 2026 Finin2min · Educational decision support · Validate assumptions and applicable law.

Guides that use this calculator

Background, worked examples and the rules behind these numbers.