Table of Contents
1. What is AMT (Alternate minimum tax)?
It is the tax computed @ 18.5% on adjusted total income (plus surcharge and cess as applicable) as per section 115JC of the Income tax act, 1961.
2. What is the AMT rate if the assessee is located in IFSC (International financial services centre)?
If the assessee is located in IFSC, then AMT is applicable @ 9% instead of 18.5%.
3. Am I required to pay advance tax if I pay tax under 115JC?
Provisions of advance tax and interest under section 234A, 234B, 234C is also applicable to assessees paying AMT under section 115JC.
4. Is AMT applicable to companies?
AMT is applicable to all assessees except companies
5. When is AMT not applicable?
The provisions of AMT does not apply to the following assessees
- Assessees who does not claim deduction under section 10AA, 35AD, 80H to 80RRB (except 80P).
- Adjusted total income of the assessee (Individual/HUF/AOP/BOI/Artificial juridical person) is less than or equal to 20 lakhs.
- Persons who has exercised the option to pay tax under concessional tax scheme under section 115BAC and 115BAD.
6. How to compute adjusted total income as per AMT provisions?
|
PARTICULARS |
AMOUNT |
|---|---|
|
Total income as per normal provisions of the act |
XXX |
|
Add: Deduction under section 10AA |
XXX |
|
Add: Deduction under section 35AD |
XXX |
|
Add: Deduction under section 80H to 80RRB(except 80P) |
XXX |
|
Less: Depreciation under section 32 on specified business capital asset |
XXX |
|
Adjusted Total Income |
XXX |
7. What is AMT credit?
- It is the difference between tax liability as per section 115JC (AMT provisions) of the act and tax liability as per normal provisions of the act.
- AMT credit can be availed when the Assessee pays the tax for the relevant PY under section 115JC (AMT provisions). In such cases the excess AMT paid over and above the tax liability as per normal provisions can be claimed as AMT credit.
- The availed AMT credit can be utilised by the assessee in the subsequent years for payment of tax.
8. What is the manner of utilisation of AMT credit?
- AMT credit can be set off against tax liability of subsequent years only when the assessee is liable to pay tax under normal provisions of the income tax act. (i.e. the year in which the tax liability as per normal provision is more than AMT liability)
- In other words, AMT credit cannot be set off against AMT liability.
9. What is the maximum time limit for carrying forward AMT credit?
- The AMT credit can be carried forward for a period of 15 years after which it will lapse.
- No interest is paid to the taxpayer in respect of such credit.
10. What is form 29C?
- Form 29C is a report from chartered accountant
- It has to be obtained by all taxpayers to whom the provisions of AMT apply.
- It has to be filed to the income tax authority via the registered login of the Chartered accountant issuing the certificate and has to be subsequently approved by the assessee.