New provisions of alternate minimum tax on individuals

Before answering your query, i want to clear some points :

When an assesee pays MAT, income tax department deems that all the provisions of that Asst Year for computing tax liability under normal provisions have been complied with and then tax under MAT provision was higher than the tax under normal provision.

It is but obvisous, inder nomal provision, depreciation under Income tax Act, must have been claimed and then only tax would have been determined.

The assessee may think that since it paid tax on MAt, it means I. T. Depreciation was not allowed for that Asst Year. and in he next asset year, it can charge that depreciation again as it had paid MAT in previous year and not normal income tax.

But, we all know, this is not possible and the assessee will have to calculate deprectation in the next asst year on the reduced WDV.

Coming to your query:

based on the above principles, it can be said that once you will pay AMT, then you will be eligible to take Credit of excess AMT paid over Normal Tax and then it will be deemed that the assessee will comply all the provisions of Normal Tax.

Presumption taken while computing Normal Tax

The assessee would not sell the new house within 3 year from the date of its acquisition

Non-compliance of this will lead to taxability of the exemption amount in the form of reduction of cost of acquisition to that extent

Now, even though the assessee will pay AMT in one year, but it will not effect the tax computations of subsequent years and all the provisions will be applicable to the Company in the same manner deeming that in the previous year the Company has paid tax under normal provision and that is the reason the asseessee will also be eligible to claim AMT Credit.