Section 206 - Special provision for minimum alternate tax and alternate minimum tax.

Minimum alternate tax rules set book profit taxation, special adjustments, exclusions, and credit carry-forward mechanisms for companies and other persons.

Minimum alternate tax applies to a company when tax on total income is less than tax on book profit, in which case book profit is deemed to be total income and tax is payable at the prescribed rate, with special rates for certain International Financial Services Centre units. The section lays down detailed book profit adjustments, special rules for foreign companies, insolvency-related companies, business trusts, royalty income, Indian Accounting Standards accounts, and reporting requirements through an accountant's certificate. Alternate minimum tax is separately provided for non-company persons on adjusted total income, with specified exclusions, credit carry-forward rules, and transitional provisions for existing tax credits.