ALTERNATIVE MINIMUM TAX (AMT)

Alternate Minimum Tax provisions are applicable for different assessment years as follows:

	Upto A.Y.2011-12	A.Y.2012-13	A.Y.2013-14 Onwards
LLP	Not Applicable	Applicable	Applicable
Any other firm	Not Applicable	Not Applicable	Applicable
Individual ,HUF, AOP, BOI,  artificial juridical person	Not Applicable	Not Applicable	Applicable  if adjusted total income exceeds 20 lakhs
Any person	Not Applicable	Not Applicable	Applicable

                                                                                                                                                                                

A CORPORATE ASSESSEE IS SUBJECT TO MAT (Minimum Alternative Tax) NOT 
AMT(Alternative Minimum Tax).

Levy of AMT:

A limited liability partnership (from A.Y.2012-13) or any other non corporate assessee (From A.Y.2013-14) is subject to AMT

DETERMINATION:

Step 1:
Find out the Income tax liability of non corporate assessee ignoring provisions of sections 115JC to 115JF.

Step 2: 
find out adjusted total income .And it is net income or total income of assessee as increased by

a.amount claimed as deduction under section 80H to 80RRB(except 80P) and

b.amount claimed as deduction under 10AA.

If assessee is an individual ,HUF,BOI,AOP or an artificial juridical person and the adjusted total income is less than or equal to  20 lakhs then these provisions will not apply  

Step 3: 
Find out 19.055%(18.5%+EC+SHEC) of adjusted total income in step 2

Step 4:
If amount computed under step 1 is equal to or more than amount determined under step 3,Then AMT provisions are not applicable.

If step 3 is more than step 1 then:

a. Adjusted total income of step 2 will be the deemed total income for that year and

b.19.055 % of adjusted total income will be tax liability

Step 5:

The excess amount computed under step 3 over step 1 will be available as credit for alternative minimum tax and it can be carried and set off against the regular tax liability of next 10 Years.

Tax credit shall be allowed for set off for an assessment year in which regular income tax exceeds alternative minimum tax.

Step 6:
If AMT provisions are applicable then assessee have to obtain report in form 29C from chartered accountant.

AMT provisions will apply only if the assessee has claimed any deduction under section 10AA or 80H to 80RRB (except 80P)