The Central Board of Direct Taxes (CBDT) has relaxed norms for levy of Minimum Alternate Tax (MAT) on companies facing corporate insolvency proceedings. As per the Income Tax Act, MAT is levied on book profit after deducting the amount of loss brought forward or unabsorbed depreciation, whichever is less. <br/><br/>The CBDT in a statement said, with effect from assessment year 2018-19, in case of a company, against whom an application for corporate insolvency resolution process has been admitted under the Insolvency and Bankruptcy Code, 2016, the amount of total loss brought forward will be allowed to be reduced from the book profit for the purpose of levy of MAT. <br/><br/>It said the decision has been taken to minimise the genuine hardships faced by such companies. The statement said appropriate legislative amendment in this regard will be made in due course.