Credit of Alternate Minimum Tax


Credit of Alternate Minimum Tax

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Income Tax
Credit of Alternate Minimum Tax [Section 115JEE]

Credit of Alternate Minimum Tax [Section 115JEE] [W.e.f. A.Y. 2015-16]

The existing provisions of section 115JEE(1) provide that the provisions of Chapter-XII BA shall be applicable to any person who has claimed: (a) a deduction under any section (other than section 80P) of part C of Chapter Vl-A or (b) a deduction u/s 10AA. The Finance (No. 2) Act, 2014 has inserted clause (c) in section 115JEE above to provide that provisions of Chapter-XII BA shall also be applicable if deduction has been claimed under section 35AD. Further the present provisions of section 115JEE(2) provide that the Chapter shall not be applicable to an individual or an HUF or an association of persons or a body of individuals (whether incorporated or not) or an artificial juridical person if the adjusted total income does not exceed `20,00,000. This has created difficulty in claim of credit of alternate minimum tax under section 115JD in an assessment year where the income is not more than `20,00,000 or there is no claim of any deduction under section 10AA or Chapter VIA. With a view to enable an assessee who has paid alternate minimum tax in any earlier previous year to claim credit of the same, in any subsequent year, the Act has inserted section 115JEE(3) so as to provide that the credit for tax paid under section 115JC shall be allowed in accordance with the provisions of section 115JD, notwithstanding the conditions mentioned in section 115JEE(l) or (2).BACK

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