All assesses except companies are liable to pay AMT if the tax payable under the normal provisions of income tax is lesser than AMT.
In simple words,
However AMT is not payable by:-
If the ADJUSTED TOTAL INCOME* OF SUCH PERSON DOES NOT EXCEED ₹ 20,00,000/-
2. Rate of AMT
18.5% of Adjusted total income* (as increased by surcharge, if applicable)
*ADJUSTED TOTAL INCOME
|Total income as computed under the normal provisions of Income Tax act||XXX|
|ADD :- Deduction under chapter VI-A (Heading C except deduction u/s 80P)||XXX|
| ADD:- Deduction claimed under section 35AD as reduced by the amount of depreciation allowable in accordance with the provisions of section 32 as if no deduction under Section 35AD was allowed in respect of the assets on which the deduction under that section is claimed (inserted by the Finance (No 2) Act 2014 w e f A Y 2015-16.
|ADD:- Deduction under section 10AA (Deduction in case of profits of SEZ units)||XXX|
|Adjusted Total Income|
3. TAX CREDIT
However, The MAT Credit of company is not allowed to carry forward in hands of LLP in case of conversion of company in LLP.
Key Points to Remember & for Clarification: –
Author Chiranjivi Nagpal and can be reach out freely at [email protected] and on +91-9999761898.