While providing many tax benefits under corporate tax, personal tax, Finance Minister Arun Jaitley in his Union Budget speech decided to carry forward the period of minimum alternative tax (MAT) and Alternative Minimum Tax (AMT) by five more years. 

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Jaitely said, "With a view to provide relief to the assessees paying MAT, it is proposed to amend section 115JAA to provide that the tax credit determined under this section can be carried forward up to fifteenth assessment years immediately succeeding the assessment years in which such tax credit becomes allowable."

The move is a positive one as this provides the companies an additional five years before they become liable to pay their MAT. 

Ameen Khwaja, Founder & CEO, LatestOne.com “Push for digital economy is a positive step towards Digital India. However, was expecting more benefits for startups and MSMEs. Few benefits are good like - the increase in the tax break segment, MAT can be carried forward to 15 years and 5% reduction in income tax for MSMEs."

Furthermore, Jaitley said, "Similar amendment is proposed in section 115JD so as to allow carry forward of Alternate Minimum Tax (AMT) paid under section 115JC upto fifteenth assessment years in case of non corporate assessee." 

These amendments  will be implemented from from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent years. 

Presently, AMT also have its tax rate fixed at 18.5%.