1. Summary
  2. AMT
  3. AMT – Alternative Minimum Tax below Section 115JC
  4. Alternate Minimum Tax – Provisions & Calculation
  5. Applicability of AMT
  6. AMT Credit


Now that you are conversant in what different Minimum Tax is, let’s take a glance at WHO is needed to pay this tax. Ideally, AMT can solely apply to those non-exempt people whose total adjusted financial gain exceeds Rs. 20, 00, 000. In addition, for AMT to be applicable, these people ought to have claimed deductions below Sections 80H to 80RRB (excluding Section 80P), Section 35AD, and Section 10AA of the revenue enhancement Act. Let’s see concerning the Computation of liabilities once AMT Provisions are Applicable


 As per section 115JC of the revenue enhancement Act, 1961, AMT is an Alternate Minimum Tax computed on the adjusted total financial gain of a non-corporate assesse. AMT is introduced within the Act, to succeed in and collect minimum taxes from the Non-company Assesses who are claiming bound profit joined deductions. AMT is collectible once Tax as per traditional provisions is a smaller amount than Alternate Minimum Tax on Adjusted Total financial gain.

AMT – Alternative Minimum Tax below Section 115JC

The revenue enhancement Department had introduced the supply of AMT i.e. Alternate Minimum Tax for taxpayers apart from Company. The government had introduced incentives and deductions to nominative industries to encourage investment and growth. There have been several taxpayers WHO victimized the supply by paying zero tax. Thus, the IT department introduced MAT (Minimum Alternate Tax) for corporations and AMT (Alternative Minimum Tax) for taxpayers apart from companies. As a part of AMT, the government ensured aggregation minimum tax from such taxpayers. Further, it conjointly gave choice to carry over the AMT Credit and regulate it in future years.

Alternate Minimum Tax – Provisions & Calculation

AMT applies to the following taxpayers:

All non-corporate taxpayers;

A taxpayer who claims deduction below the following:

  • Chapter VI-A below Section 80H to 80RRB that is provided concerning profit and gains of industries that is nominative as housing comes, export business, building business, infrastructure development. Small scale business etc. Though, a deduction that is below section 80P that has a deduction for cooperative society isn’t a part of this aim.
  • Deduction below Section 35AD.
  • Deduction below Section 10AA.

So we will conclude that the supply of AMT is going to apply to any or all the non-corporate taxpayers who have profits or gains from business and profession. In addition, the supply of AMT is additionally applicable once traditional tax that is collectible is lesser than AMT for any year.


Provision of AMT doesn’t apply to a private, Hindu Undivided Family, Artificial Judicial Person, Body of Individual, Association of Person whose Adjusted Total financial gain isn’t surpassing Rs 20, 00, 000. Consequently, the exemption of a financial threshold higher than the limit isn’t applicable for LLP, non-corporate taxpayers, and partnership companies.

Applicability of AMT

The provisions of different Minimum Tax apply to the subsequent class of taxpayers:

  1. Individual, HUF, AOP (Association of Persons) or BOI (Body of Individuals) if the adjusted total financial gain exceeds government INR 20 lacs
  2. The other remunerator (other than Company) no matter the whole financial gain.

The AMT provisions apply to the higher class of taxpayers solely if:

  • Taxpayer claims a deduction below Section 80H to Section 80RRB (except Section 80P)
  • Taxpayer claims a deduction below Section 35AD.
  • The remunerator claims a deduction below Section 10AA.

AMT Credit

AMT is collectible if the conventional liabilities are a smaller amount than the AMT liability (AMT > Normal Tax). If in any year AMT is collectible then the distinction between the traditional Tax collectible and AMT paid is allowed as AMT Credit and may be adjusted with normal liabilities in subsequent/ future years within which the conventional revenue enhancement collectible exceeds the AMT. AMT Credit is often carried forward up to ten years.

A remunerator to whom provisions of different Minimum Tax are applicable pays tax as per traditional provisions or as per the speed of 18.5% whichever is higher. Once the liabilities for a year are paid as per different Minimum Tax, the remunerator will claim the credit of excess tax paid within the future monetary years as per Section 115JD of the revenue enhancement Act. Excess Tax is the quantity of different Minimum Taxes paid in far more than a tax as per traditional provisions.

The AMT Credit is often carried forward for an amount of fifteen monetary years. If the remunerator is unable to use the AMT Credit in fifteen years, this credit can lapse. No interest is paid on such credit.