Schedule AMT – Computation of Alternate Minimum Tax Payable under Section 115JC AY 20206-27

‘Schedule AMT’ in the Income Tax Return (ITR) form applies to non-corporate assessees, who have claimed specified deductions under the Income-tax Act and whose adjusted total income exceeds Rs. 20 lakhs. Under such circumstances, the assessee becomes liable to pay the Alternate Minimum Tax (AMT) as per Section 115JC of the Income-tax Act, 1961.

The schedule requires information on a differential basis depending on the ITR form being filed. It facilitates the computation of AMT and begins with the reporting of total income, as derived from PART-B-TI of the return. The assessee is then required to make specific adjustments to this income in accordance with Section 115JC(2).

The adjustments include the amount of deductions claimed under Chapter VI-A, specifically under the heading “C.—Deductions in respect of certain incomes,” the deduction claimed under Section 10AA for income from units in Special Economic Zones, and the deduction claimed under Section 35AD, reduced by the amount of depreciation on the assets for which such deduction was availed.

The total of these adjustments is added to the total income to arrive at the adjusted total income under Section 115JC(1). If the assessee has units located in an International Financial Services Centre (IFSC), the adjusted total income must be further bifurcated into income attributable to IFSC units and income from other units.

The Alternate Minimum Tax is then calculated based on this bifurcation. AMT is computed at 9% on the adjusted total income attributable to IFSC units and at 18.5% on the income from other units. This computation is applicable only where the adjusted total income exceeds Rs. 20 lakhs and is higher than the regular income tax payable.

• Section 115JCof Income-tax Act, 1961

As per Section 115JC, the Alternate Minimum Tax (AMT) is payable by a non-company assessee whose regular tax on total income is less than 18.5% (or 9% in case of an IFSC unit or 15% in case of a co-operative society) of the ‘Adjusted total income’. ‘Adjusted total income’ is computed by adding to the taxable income various deduction claimed by the assessee. However, an individual or a Hindu undivided family (HUF) or an association of persons (AOP) or a body of individuals (BOI) or an artificial juridical person (AJP) is not liable to pay AMT if adjusted total income does not exceed Rs 20 lakhs. Further, the provisions of AMT don’t apply in case of an assessee who opts for alternative tax regime of Section 115BAC, 115BAD, or 115BAE.