Which of the following statements regarding the term "Minimum Alternate Tax (MAT)" is incorrect?
1
MAT is a tax mechanism intended to guarantee that businesses, particularly those who make significant profits, pay the government a minimum amount of tax.
2
It was implemented in India in 1989 as a component of the Income Tax Act of 1961.
3
The Finance Act, 1987 introduced MAT in the form of a tax on book profits in Section 115J of Income Tax Act.
4
It applies to all businesses operating in India or from other countries.