Assocham plea to abolish MAT
New Delhi: The Associated Chambers of Commerce and Industry of India (Assocham) has mooted a proposal to the Ministry of Finance to abolish Minimum Alternative Tax (MAT). According to the chamber, MAT is payable by companies even on long-term capital gains, though the same might not be taxable because of indexation or investment in bonds in accordance with the provisions of Sections 54EC of the Act.

Regarding the dividend distribution tax, the Chamber has suggested that the provisions of Section 80M should be re-introduced so that the domestic companies receiving the dividends can be granted deduction under section 80M, restricted to their pay-out of dividends.
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