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Pranav Connecting...

Pranav Connecting...

CA Inter

4K+

11-May-20 16:58

25

Alternate Minimum Tax

Is alternate Minimum Tax a Mandatory alternative to the Normal Income tax? If yes, who has to pay the AMT.

Answers (6)

Satya  Shashank

Satya Shashank

CA Inter

13K+

11-May-20 17:44

If you're already paying at least that much because of the regular income tax, you don't have to pay AMT. But if your regular tax falls below the minimum, you have to pay the higher AMT amount. The AMT takes away certain breaks allowed by the regular income tax system.

Pranav Connecting...

Pranav Connecting...

CA Inter

4K+

11-May-20 18:58

I didn't really get what you said.will you please make a further explanation to this

Suraj Lakhotia

Suraj Lakhotia

Admin

11-May-20 21:08

Alternate Minimum tax is to required to be paid in specified cases if normal income tax is less than tax arrived by AMT provisions. The assessee has to pay AMT.

Pranav Connecting...

Pranav Connecting...

CA Inter

4K+

12-May-20 00:24

Sir situations of that special cases or there meaning that every time we have to calculate tax using both the methods[normal and AMT] and find out which is greater to pay Tax.

KEERTHI PRIYA

KEERTHI PRIYA

Moderator

12-May-20 14:42

AMT will be calculated in 3 situations where deduction is claimed under 10AA (SEZ) 35(AD) Specified business 80H to 80RRB (except 80P) In all above situations question of calculating AMT will arise, then Income under normal provisions is compared with AMT, higher tax in those two will be taken.

Pranav Connecting...

Pranav Connecting...

CA Inter

4K+

12-May-20 14:53

Ok..thank you..