49. Rationalisation of Provisions relating to tax credit for Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT).
49.1 Section 115JAA of the Income-tax Act contains provisions regarding carrying forward and set off of tax credit in respect of MAT paid by companies under section 115JB of the Income-tax Act. Before amendment by the Act, the provisions specified that the tax credit can be carried forward for up to ten assessment years.
49.2 With a view to provide relief to the assessees paying MAT, section 115JAA of the Income-tax Act has been amended to provide that the tax credit determined under this section can be carried forward for up to fifteen assessment years immediately succeeding the assessment year in which such tax credit becomes allowable.
49.3 Similarly, section 115JD of the Income-tax Act has also been amended so as to allow carry forward of AMT paid under section 115JC of the Income-tax Act for up to fifteen assessment years in case of non-corporate assessees.
49.4 Sections 115JAA and 115JD of the Income-tax Act have also been amended so as to provide that the amount of tax credit in respect of MAT/AMT shall not be allowed to be carried forward to subsequent year to the extent such credit relates to the difference between the amount of foreign tax credit (FTC) allowed against MAT/AMT and FTC allowable against the tax computed under regular provisions of Act other than the provisions relating to MAT/AMT.
49.5 Applicability: These amendments take effect from 1st April, 2018 and will, accordingly, apply from assessment year 2018-19 and subsequent years.