Sir,
Our firm is eligible for deduction u/s.80IBA for affordable housing project. Income earned from this project is 100% tax free.
But our tax consultant opinion is that we have to pay tax on that income u/s.115JC, Alternative Minimum Tax, 18.50% +Surchage+Cess. And this amount will carry forward to next assessment year and we can claim this amount if normal tax arrives greater than alternative minimum tax. Our project is full covered by u/s.80IBA and there is no question arrive in future that our normal tax will be greater than alternative minimum tax.
So our question is that,
01.How can we say that 80IBA affordable housing project is 100% tax free?
02.What about amount paid by us under section 80IBA? Because in future there is no chance that our normal tax liability will be greater than alternative minimum tax.
03.Can we claim alternative minimu tax credit in future if we start other housing project that not comes u/s.80IBA?
Waiting for valuable guidance.
Thankns & regards.
CAclubindia
