Alternative minimum tax

Hiiii Venkata Rambabu,

The provision of sec 115JC is amended in Finance Act, 2012, extended the applicability to all assessee othe than corporate. Earlier, sec 115JC was applicable to solely to LLP. 

As per the amended provision of Sec 115JC, AMT shall be applicable to all person other than corporate, where the regular taxable income of person, other than company , is less than the alternate minimum tax payable and the adjusted total income of the that person shall be deemed to be the total income of assessee and AMT shall be paid @ 18.5% on such total income.

Adjusted total Income shall be the total income of the person before giving the effect of

(i) Dedution under Chapter VI under the heading -C (i.e deduction in respect of certain incomes- Sec. 80 H to 80RRB, except Sec 80P)

(ii) Deduction claimed u/s 10AA.

Pursuant to Sec 115JC, newly sec 115JEE inserted by Finance Act, 2012 w.e.f A.Y 13-14, which states as follows:

(i) The provision of amendmend made in sec 115JC shall be applicable to those person,

 (a) claimed the deduction under chapter VI-A under heading C

(b)  claimed decution u/s 10AA

(c) having adjsuted total income exceeding Rs 20 lacs.

In the vie of above mentioned paragraph, Sec 115JC shall be applicable to that Individual, claimimg deduction umder chapter VI-A and having adjusted total Income exceeding Rs 20 lakh.

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