Tax credit carry-forward rules are tightened for domestic and foreign companies under the amended alternative tax framework. Section 206 is amended to revise the conditions and mechanics for carried-forward tax credit under the alternative tax regime. The amendment substitutes the rate in one provision from 15% to 14%, omits specified clauses, and introduces separate rules for domestic companies and foreign companies. Domestic companies may set off brought-forward credit up to 25% of tax payable, subject to a 15-year limit and corresponding adjustments if tax payable changes, while foreign companies may set off credit only to the extent of the difference between tax liability under the Act and minimum alternate tax, also subject to the same limit.
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Provisions expressly mentioned in the judgment/order text.
Tax credit carry-forward rules are tightened for domestic and foreign companies under the amended alternative tax framework.
Section 206 is amended to revise the conditions and mechanics for carried-forward tax credit under the alternative tax regime. The amendment substitutes the rate in one provision from 15% to 14%, omits specified clauses, and introduces separate rules for domestic companies and foreign companies. Domestic companies may set off brought-forward credit up to 25% of tax payable, subject to a 15-year limit and corresponding adjustments if tax payable changes, while foreign companies may set off credit only to the extent of the difference between tax liability under the Act and minimum alternate tax, also subject to the same limit.
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