Alternative minimum tax

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Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2014 please briefly explain AMT that apply for proprietorship firm.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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26 August 2014 Please give me your email id. I will mail you a presentation explaining AMT.

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2014 please sir ,explain in 2-3 lines .

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 August 2014 The AMT is required to be paid at the rate of eighteen and half percentage as increased by education cess and higher secondary education cess i.e. 19.055%. The AMT is payable only if the tax payable under the normal provision is lesser than AMT.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 August 2014 Alternate Minimum Tax (AMT):Alternate Minimum Tax (AMT) was introduced by theFinance Act, 2011w.e.f. 01.04.2012 on Limited Liability Partnerships (LLP). Later on by theFA 2012this has been extended to all assesses other than companies. For companies we find separate provisions for MAT, at presentu/s 115JBand related provisions inChapter XII-BA.The applicability of AMT:The AMT will apply only to those assesses who prefer claim of exemption undersection 10AA and deductions underChapter VIA- C in relation to certain incomes (except deductionu/s S.80P).In case of individual, HUF, AOP and BOI further relaxation from AMT is provided if the adjusted total income does not exceed Rs.20 lakh.