Rationalising the provisions of section 115JB

[Admin TMI]

Question - What are the proposed changes in Section 115JB in Finance Bill 2015 ?

AI Summary

Proposed Amendments to Section 115JB: Excluding AOP Income and FII Capital Gains from MAT Calculations The discussion addresses proposed amendments to Section 115JB of the Income Tax Act in the Finance Bill 2015. The amendments aim to exclude certain incomes from the calculation of Minimum Alternate Tax (MAT). Specifically, the share of income from an Association of Persons (AOP), which is not taxable under Section 86, will be excluded from MAT computations. Additionally, income from securities transactions by Foreign Institutional Investors, classified as capital gains, will also be excluded from MAT. Corresponding expenditures related to these incomes will be added back to the book profit for MAT calculations. These changes are effective from April 1, 2016, for the 2016-17 assessment year onward.