Alternate Minimum Tax
Is alternate Minimum Tax a Mandatory alternative to the Normal Income tax? If yes, who has to pay the AMT.
IfÂ you're alreadyÂ payingÂ at least that much because of the regular income tax,Â youÂ don'tÂ have to pay AMT. But if your regular tax falls below the minimum,Â you have to payÂ the higherÂ AMTÂ amount. TheÂ AMTÂ takes away certain breaks allowed by the regular income tax system.
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.