Section 115JB → Section 130
Special provision for payment of tax by certain companies (Minimum Alternate Tax - MAT)
Quick Answer
Section 115JB of the Income Tax Act, 1961 (Special provision for payment of tax by certain companies (Minimum Alternate Tax - MAT)) corresponds to Section 130 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 115JB
Provision Summary
Mandates companies to pay at least 15% tax on their 'Book Profit' if their normal tax liability is lower due to heavy deductions.
Sec 130
Provision Summary
Retained, but its applicability is drastically reduced since companies opting for the default 22% regime (Section 115BAA) are entirely exempt from MAT.
Key Changes & Highlights
- MAT is now practically applicable only to a small subset of companies still claiming old sunset deductions (like SEZ holidays under 10AA).
Related Sections
Related Articles from the Tax Academy
corporate compliance
MAT Credit Carry Forward: Understanding the 15-Year Rule in DTC 2025
A professional guide on the transition of Minimum Alternate Tax (MAT) credit carry-forward rules from the Income Tax Act 1961 to the new Direct Tax Code 2025. Learn about the 15-year rule.
corporate compliance
Old vs New MAT Slabs: A Corporate Guide to the Direct Tax Code 2025
A detailed analysis by a Senior Tax Advisor on the shift from the Income Tax Act 1961 MAT to the new slab-based system in the Direct Tax Code 2025. Essential compliance guide for Financial Controllers.
old vs new scheme
Corporate Tax Slabs 2026: Old Rates vs New 22% Regime (Sec 115BAA)
A professional guide for corporations on transitioning from the old tax slab to the new 22% rate under Section 115BAA for FY 2025-26. Analysis includes MAT impact and break-even points.
Frequently Asked Questions
What does Section 115JB of the Income Tax Act 1961 deal with?
Section 115JB (Special provision for payment of tax by certain companies (Minimum Alternate Tax - MAT)) Mandates companies to pay at least 15% tax on their 'Book Profit' if their normal tax liability is lower due to heavy deductions.
What is the new section number for Section 115JB under the Direct Tax Code 2025?
Section 115JB of the ITA 1961 maps to Section 130 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 115JB under the new tax code?
Section 115JB is marked as "Retained" with status "Modified". Impact: High - Historically the biggest corporate tax section, now slowly phasing out of relevance.
What are the key changes to Section 115JB under DTC 2025?
MAT is now practically applicable only to a small subset of companies still claiming old sunset deductions (like SEZ holidays under 10AA).
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
Need professional help on Section 115JB?
Compare trusted providers — both offer DTC 2025-ready CA services.
*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.
Want to calculate tax on this section?