Budget 2026: Minimum Alternate Tax to be final tax from April 1, rate cut to 14%; NRIs exempt
In a key change to the Minimum Alternate Tax (MAT) regime, the Union Budget 2026 has proposed to make MAT a final tax from April 1, 2026, while also reducing the applicable rate.
As part of the Budget announcements, the finance minister stated that MAT will no longer allow carry-forward or utilisation of MAT credit from April 1, 2026. This means companies that pay MAT will not be able to set off such payments against future regular tax liabilities beyond this date.
Separately, the Budget proposed to reduce the MAT rate from 15% to 14% on book profits, providing some relief on the overall tax incidence for entities covered under the provision.
