Short Concept On AMT (Alternate Minimum Tax)
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CONCEPT OF ALTERNATE MINIMUM TAX
As per the current provisions of income Tax Act , 1961 Companies are liable to par MAT (Minimum Alternative Tax) on their Book Profits and the LLP (limited Liability Partnership) are liable to pay AMT (Alternate Minimum Tax) in substitution of normal Income Tax.
As from Assessment year 2013-2014 MAT is applicable on companies only, on the contrary AMT is applicable on all the other assessees along with LLP’s. It is applicable on those asssessee who are claiming deduction under CHAPTER VI-A heading C (except deduction US 80P) or the assessees who claims exemption US 10AA.
However AMT is not applicable on those Individual and HUF assessees whose total taxable income before claiming deduction Under CHAPTER VI-A does not exceed Rs. 20 lakhs.
Rate Of AMT (Alternate Minimum Tax) is 18.5% + 2% EC + 1% SHEC.
Overall Its - 19.055%
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