Alternate minimum tax

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Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2013 EXPERTS,

WHETHER AITERNATE MINIMUM TAX APPLICABLE TO INDIVIDUAL HAVING ONLY SALARY INCOME OF 25,00,000/- AND 80C DEDUCTION OF 1,00,000/-.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 July 2013 AMT not applicable for Individuals Having only Salary Income.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 July 2013 Yes it is applicable in this case as your income exceeds 20laks as per sec 115JE.

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Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2013 Whether applicable or not any 3rd opinion.........................

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 July 2013 yes it is applicable refer sec 115JE.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 July 2013 Sanjay ji!
pls mention where it is written that for ind having any sal income then amt is not aplicable.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 July 2013 Dear Tushar please check i have written AMT not applicable for Individual having only slary Income. In my view there will be no effect of AMT for Individual having only Salary Income. Salaried persons are not excuded since a salaried person can also have business income. But in effect for a person having only salary income there will be no effect of AMT.

In the given case there is 25 Lac Salary Income and Rs 1 Lac deduction u/s 80C. Please tell in your view what will be the amount and or effect of AMT?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 July 2013 Dear sanjay pls check the following link:

http://220.227.161.86/28186bos17814dtl.pdf

refer page 52 it clearly means that any person other than a company who has claimed deduction under chapter VIA (exlc 80P) under the heading "C-Deductions in respect of certain incomes" or under sec 10AA would be subject to AMT w.e.f AY13-14 (sec 115JEE)

it means salaried per claiming deduction under sec 80 excp 80P and whose adj ttal income is more then 20lacs is sub to AMT.

so the amount of AMT in this case is 25,00,000-1,00,000 (Sec 80C) deeducted as per above prov =24,00,000 *18.5% (as per 115JC) =Rs 4,44,000.

Hope now u got my views and AMT also.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 July 2013 for effect of AMT u need to first cal tax as per slab rate and compare it with amt as cal if amt is more then Adjusted total income would be total income and amt would be tax payable + 3% Edu cess and Higher education cess as full and final tax iability

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 July 2013 1st of all Dear Tushar according to you in the given case AMT will be 18.5% of Rs 24 Lacs.

Now, AMT is applicable on Adjusted Total Income. Is adjusted Total Income applicable to Individual having only salary income. Rs 24 Lacs is Taxable Income.

If Taxable Income be adjusted total income for person having only Income from Salary, AMT will always be less compared to Income Tax as per applicable slab. Since amt is applicable on Adjusted Total Income in excess of Rs 20 Lacs. So in that way no effect of AMT on Individual having only Salary Income.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 July 2013 yes, it is applicable to salaried person also as using the concept of negative analogy sec 115JEE do not exempt specifically person having only salaried income.

moreover author has above mentioned that he has deduction under chapter VI-A under sec 80C it means AMT is applicable for salaried person having only salaried income with deduction entined.

Further it doesnt means that if in this case if AMT is less then for other similar cases AMT will not be applicable.

suppose in case a ind with similar situation and income head but has more sal income and suppose his amt is more then normal tax rate then in that case do you ignore amt???????

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 July 2013 and whether amt has the effect or not is a question that needs to be asked and checked later.
first as the author has asked whether Amt is applicable or not.

for the purpose of cal it has to be first checked and aplied and seen whether AMT is applicable and then later compare the amount with normal tax rate.

i am talking about the applicability of amt in such cases in general and not only in this querry only.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 July 2013 One Final query...

In ITR 4 there is specific column for AMT credit and there is AMT Schedule.

If AMT is applicable to individuals having only salary income then why there is no AMT schedule or specific column for AMT credit in ITR 1, ITR 2 or ITR 3?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 July 2013 no they need to file only itr 4 when AMT is applicable.

ITR 1,2,3 is then not applicable only as amt means Alternate min tax ( same as MAT concept).
Hence only itr 4 is applicable and that is why dept for smooth functioning have not included in wat u asked above itr 1-3 but only in ITR4.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 July 2013 The AMT will apply only to those assesses who prefer claim of exemption under section 10AA and deductions under Chapter VIA- C – in relation to certain incomes (except deduction u/s S.80P).

Effective sections for AY 2013-14 which will be affected by AMT:
# Section 10AA- SEZ units.
# Sections of Chapter VIA- C:

The effective sections under which claims against certain incomes will be available for Assessment Year 2013-14 and which will be affected by provisions of AMT are as follows:

# Section 80-IA – infrastructure development
# Section 80-IAB – development of SEZ.
# Section 80 IB- certain industrial undertakings and enterprises .
# Section 80-IC- undertakings in certain special category states.
# Section 80-ID- hotel and convention centers in specified area.
# Section 80-IE- certain undertaking in North Eastern States.
# Section 80JJA- collection and processing of bio degradable waste.
# Section 80JJAA- employment of new workman.
# Section 80LA – offshore banking units and international financial service center.
# Section 80 QQB- certain royalty to authors of books.
# Section 80RRB – Royalty on patents.

AMT not applicable on 80C deduction.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 July 2013 so in case if ind having sal income and part time business income ,just tell me whether AMT will be applicable or not.

sal income-40 lacs ,
deduction under sec 80JJAA-50,000
SEC 80QQB-1,00,000 &
SEC 80RRB-50,000.

My question is u had said above that only salaried income person are exempted from Applicability of AMT?

please show me where it is written ??

Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 July 2013 80JJAA is deduction in respect of employment of new worker, 80QQB & 80RRB - for royalty income. How these deduction apply to a salaried person?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 July 2013 in case if person has sal income and side business then??????

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 July 2013 Dear Tushar deduction u/s 80QQB, 80RRB and 80JJAA does not apply to a person having only salary income and therefore the question of AMT does not arise.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 July 2013 Dear Tushar please see my 1st reply i had said that AMT does not apply to an Individual having only salary income which means no side business.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 July 2013 Dear sanjay bhai im talking if person has business and sal income and if he has deduction under sec80QQB OR RRB OR JJA.????
THEN WHAT ARE YOUR VIEWS????

Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 July 2013 Then apply but then the original query of the queriest stands modified by you.

However it would be a very wiered case where salary income would be less and mainly business income.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 July 2013 Then AMT applicable and he will file ITR 4. But Tushar Bhai you opposed my 1st reply which states that AMT not applicable on individual having only Salary Income.

Further in my opinion you gave wrong reasons for no AMT Scheduel in ITR1, ITR2 & ITR3.

You said if AMT applicable to Individual having only salary income he will have to file ITR 4 which i find incorrect.

I will request Aditya and other experts to throw more light on this.

Dear Aditya why AMT Schedule is not there in ITR1, ITR2 & ITR3?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 July 2013 SO THATS WAT I WAS ARGUING EVEN IF SALARIED PERSON HAVING DEDUCTION UNDER THE ABOVE SEC WITH A BUSINESS IN GENERAL IM SAYING STILL SUCH CLASS OF SALARIED PERSON ARE COVERED BY AMT...

PLEASE READ THE MEMORANDUM EXPLAINING THE BUGET...IT WANTS TO TAKE IN ITS GARB MAX PERSON UNDER AMT.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 July 2013 Dear Tushar please read the question once again.

He is asking whether AMT applicable on individual having only salary income and 80C deduction? and the answer is no its not applicable.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 July 2013 sanjay bhai if the reasons give are wrong for not including of AMT sch in itr1,2 and 3 then what can be the possible reasons behind it in your view?

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 July 2013 The main reason is AMT applicable only in case of Business Income and where specific deductions as mentioned earlier in respect of business income is claimed.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 July 2013 Now to summarise whatever was stated above and to end the discussion the original query of the queriest was whether AMT applicable on only salary income assessee stands answered as NO by both Sanjay & Tushar.

AMT can apply only in case where there is business income and not otherwise as it applies to only deduction under chapter VI-A part C (except 80P) which applies to only business income and not to salary income.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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22 July 2013 Completely Agree with Aditya's reply and thats what i have been saying all through my replies.

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