Minimum alternate tax: deemed income based on book profit or adjusted total income, taxed at prescribed rates with credit rules. Clause 206 mandates that where tax under ordinary provisions is below specified percentages of book profit (for companies) or adjusted total income (for others), that book profit or adjusted total income is deemed total income and taxed at the prescribed percentage rate. It prescribes the computation of adjusted total income and a formula for book profit (B = P + (I - R)) with detailed lists of add-backs and deductions, special adjustments for various company classes, obligations for prescribed financial statement formats and certification, a tax-credit and carryforward mechanism for tax paid under this provision, and enumerated exclusions and procedural recomputation rules.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Minimum alternate tax: deemed income based on book profit or adjusted total income, taxed at prescribed rates with credit rules.
Clause 206 mandates that where tax under ordinary provisions is below specified percentages of book profit (for companies) or adjusted total income (for others), that book profit or adjusted total income is deemed total income and taxed at the prescribed percentage rate. It prescribes the computation of adjusted total income and a formula for book profit (B = P + (I - R)) with detailed lists of add-backs and deductions, special adjustments for various company classes, obligations for prescribed financial statement formats and certification, a tax-credit and carryforward mechanism for tax paid under this provision, and enumerated exclusions and procedural recomputation rules.
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