Section 115jd under Schedule AMTC

Hey Amlan! Let’s unpack your query about Section 115JD and Schedule AMTC in your ITR-5 for the LLP.

What is Section 115JD?

• Section 115JD deals with Minimum Alternate Tax (MAT) Credit.

• If your LLP paid MAT in any year, you are entitled to claim credit for that MAT paid against regular tax payable in subsequent years.

• The credit can be carried forward for 15 years and used to reduce tax liability when regular tax is payable.

About Schedule AMTC:

• Schedule AMTC shows details of Advance Tax / Self-Assessment Tax / MAT credit and how the tax credit is available or used.

• The points in Schedule AMTC typically indicate:

  1. Tax paid in advance or self-assessment

  2. Tax deducted at source (TDS)

  3. Tax credit available under MAT (Section 115JD)

Your case:

• You see Rs. 4654 under item 3 – this means your LLP has MAT credit of Rs. 4,654 available from earlier years (maybe from AY 2020-21 or earlier).

• Items 1 and 2 are zero, meaning no advance tax or TDS credits reported.

• Since you are reporting losses for AY 2021-22 and earlier, no regular tax is payable, so MAT credit remains unused and carried forward.

Can you carry forward losses and MAT credit?

• Yes, losses of LLPs can be carried forward and set off in subsequent years subject to normal provisions (e.g., business loss can be carried forward for 8 years).

• Similarly, MAT credit under Section 115JD can be carried forward for 15 years.

• When your LLP becomes profitable and regular tax is payable (more than MAT), you can utilize MAT credit to reduce tax liability.

How to carry forward?

• Just file ITR on time each year reporting losses and MAT credit balance properly.

• The IT department automatically carries forward the losses and MAT credit in their system.

• Ensure Schedule AMTC is correctly filled in each year to reflect available credit and usage.

Summary: