ITR showing need to pay tax as per 115JC AMT

Hey, my taxable income is less than after all the eligible deductions and I have not claimed any deductions

under 10AA, 35AD, 80H to 80RRB. Also, my income is less than Rs. 20 Lakh

In my Form 16, there is no tax as my taxable income is less than 5 Lakh, and no TDS is deducted in the last year.

But, still, my ITR 2 shows that I need to pay Tax as per Total Income of 115JC AMT.

My details are as follows -

Salary = 867815

DEDUCTIONS

Basic Exemption = 50,000

HRA = 16324

The total amount of any other exemption under section 10 = 5362

Tax on employment under section 16(iii) = 2400

House Property Loss - Rs. 2,00,000

80(C) - 1,50,000

LTCG = 50,000

STCG = 1,000

Total taxable income = 453729

But still while filling, ITR There is the message that I need to pay Minimum Tax as per 115JC AMT.

Please help !

Hey Radhika! I see you’re puzzled about why your ITR 2 is showing a tax liability under Section 115JC (AMT – Alternate Minimum Tax) even though your taxable income seems low. Let’s break this down clearly.

What is Section 115JC – AMT?

AMT is applicable to all assessees (other than companies) who claim certain deductions or exemptions under chapters VI-A or other specified sections.
If your tax calculated as per normal provisions is less than 18.5% (including cess) of your Adjusted Total Income, then AMT applies, and you have to pay tax as per AMT provisions.
Adjusted Total Income is your total income before claiming specified deductions/exemptions.

Why AMT is triggered in your case?

You mentioned:

Salary: Rs. 8,67,815
House Property Loss: Rs. 2,00,000
Deduction under 80C: Rs. 1,50,000
HRA and other exemptions
LTCG, STCG

Even though your final taxable income is Rs. 4,53,729 after deductions, AMT looks at Adjusted Total Income before deductions like 80C and some others.

Rough calculation example:

Adjusted Total Income (ATI):
This is usually your total income before deductions like 80C, 10AA, etc.
Let's say ATI = Salary + LTCG + STCG + House Property Loss (without deductions)
So roughly, ATI = 8,67,815 (salary) + 50,000 (LTCG) + 1,000 (STCG) - 2,00,000 (house property loss) = Rs. 6,18,815
Normal tax payable on your taxable income (after deductions):
Tax on Rs. 4,53,729 is low or NIL as per your case.
AMT = 18.5% of ATI
AMT liability = 18.5% × Rs. 6,18,815 ≈ Rs. 1,14,482 (approx)

If your normal tax liability < AMT, then you pay the higher of the two (here AMT).

Is AMT applicable to you?

AMT is usually triggered if you claim deductions under certain sections, especially 80C or if you have loss from house property.
In your case, since you have claimed Rs. 1,50,000 under 80C and a house property loss, AMT is triggered because these deductions reduce your taxable income significantly below the threshold.

What to do next?

Confirm if you have claimed deductions under sections attracting AMT like 80C, 80D, house property loss, etc.
Check the AMT liability calculation in your ITR form or utility carefully.
If AMT applies, pay the AMT liability shown in ITR.
You can carry forward AMT credit (the difference between AMT paid and normal tax) for 15 years and adjust it against normal tax in future years when it exceeds AMT.

Summary for you:

AMT applies because of deductions under 80C and house property loss which reduce your normal tax.
Your adjusted total income before these deductions is higher, triggering AMT liability.
You have to pay tax as per AMT, which is higher than normal tax.
You get credit for AMT paid to adjust in future years.