I have a client, an individual who is not covered by the provisions of AMT. This is because, he has total income exceeding Rs. 20,00,000/- (because of long term capital gain) but he is not claiming any deduction under sections 80H to 80RRB or under section 10AA. Accordingly, tax should have been calculated at special rates on capital gains and normal rates on balance income. However, tax is being calculated at 18.5% (ie AMT). Why is this so?? Anybody facing similar problem??
2 Replies
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 29 July 2013
give me the details of all sources of income and deduction availed by such individual.
even capital gain is covered by AMT.
CA Anjali Kuttikar
(Chartered Accountant)
(127 Points)
Replied 30 July 2013
Thank you for the input Mr. Tushar. AMT is applicable only when total income exceeds Rs. 20,00,000/- and the assessee claims deduction u/s 10AA or u/s 80H to 80RRB. The tax that was being calculated at higher rate (i.e. AMT) was because of the error in ITR. I downloaded a fresh ITR and computed the tax using the old details. The tax now shows the correct amount.
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