With reference to the Circular No. 29 dated 2nd October 2019 regarding clarification in respect of option under section 115BAA of the Income Tax Act, 1961 inserted through the Taxation Laws (Amendment) Ordinance 2019, wh

Allowability of brought forward MAT credit: As regards allowability or brought forward MAT credit, it may be noted that as the provisions of section 115JB relating to MAT itself shall not be applicable to the domestic company which exercises option under section 115BAA of the Income tax Act, 1961, it is hereby clarified that the tax credit of MAT paid by the domestic company exercising option under section 115BAA of the Act shall not be available consequent to exercising of such option. Further, as there is no time line within which option under section 115BAA can be exercised, it may be noted that a domestic company having credit of MAT may, if it so desires, exercise the option after utilising the said credit against the regular tax payable under the taxation regime existing prior to promulgation of the Ordinance.