The Minimum Alternative Tax (MAT) was introduced in the Budget of the Government of India for the year

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Q: 103 (IAS/1997)
The Minimum Alternative Tax (MAT) was introduced in the Budget of the Government of India for the year

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,38,86,26,33,27,38

keywords: 

{'minimum alternative tax': [0, 1, 0, 0], 'mat': [0, 1, 0, 0], 'budget': [3, 1, 4, 10], 'india': [8, 1, 7, 13]}

The Minimum Alternative Tax (MAT) is a tax built into the income tax system of India devised to help the government tackle non-payment of tax by certain corporations. It ensures that companies that claim tax deductions through exemptions, incentives, or rebates under the Income Tax Act pay a minimum amount of tax.

Option 1 states the year as 1991-92 and option 2 as 1992-93, these are incorrect as the concept of MAT was not introduced during these years.

Option 3 states the year 1995-96 which is not correct. MAT was initiated in the direct tax proposals for the annual budget for 1996-97, not in 1995-96.

Option 4 correctly identifies the year 1996-97. In this year, MAT was introduced for the first time in the Indian budget by the then finance minister. Therefore, the correct answer is 4, indicating the year 1996-97.