TaxTMI 
TaxTMI 
TaxTMI 
Special provision for minimum alternate tax and alternate minimum tax.
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.... (ii) in case of any other company, at a rate of ^5[14%]. (c) For the purposes of this section, "book profit" means the profit as shown in the statement of profit and loss for the relevant tax year prepared as per clause (f), as increased by- (i) income-tax paid or payable and the provision therefor, if any such amount is debited to the statement of profit and loss, where income-tax shall include- (A) any interest charged under this Act; (B) surcharge, if any, as levied under the Central Acts; (C) Education Cess on income-tax, if any, as levied under the Central Acts; and (D) Secondary and Higher Education Cess on income-tax, if any, as levied under the Central Acts; (ii) the amounts carried to any reserves, called by any name, if any such amount is debited to the statement of profit and loss; (iii) the amount or amounts set aside to provisions made for meeting liabilities, other than ascertained liabilities, if any such amount is debited to the statement of profit and loss; (iv) the amount by way of provision for losses of subsidiary companies, if any such amount is debited to the statement of profit and l....
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....ferred to in clause (d). (d) While computing the book profit under this section, the following amounts shall be further adjusted:-- (i) in case of a company being a member of association of persons or body of individuals having income being share of the assessee in the income of an association of persons or body of individuals, on which no income-tax is payable as per the provisions of section 310, then- (A) the amount or amounts of expenditure relatable to such income if debited to the statement of profit and loss, is to be added; and (B) the amount being income if credited to the statement of profit and loss, is to be reduced; (ii) in case of a foreign company having income accruing or arising from- (A) capital gains arising on transactions in securities; or (B) the interest, dividend, royalty or fees for technical services chargeable to tax at the rate or rates specified in Chapter XIII, and the income-tax payable thereon as per the provisions of this Act, other than the provisions of this Part, is at a rate less than the rate specified in clause (b), then- (I) the amount or amounts of expenditure relatab....
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.... 241 of the Companies Act, 2013 (18 of 2013) has after suspension of the Board of Directors of such company has nominated new directors under section 242 of the said Act, the aggregate amount of unabsorbed depreciation and loss (excluding depreciation) brought forward of such company and its subsidiary and the subsidiary of such subsidiary, is to be reduced; (vii) in case of a company against whom corporate insolvency resolution process has been admitted by the Adjudicating Authority under section 7 or 9 or 10 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the aggregate amount of unabsorbed depreciation and loss (excluding depreciation) brought forward, is to be reduced; (viii) in case of a company being a sick industrial company under section 17(1) of the Sick Industrial Companies (Special Provisions) Act, 1985 (1 of 1986), as it stood immediately before its repeal by the Sick Industrial Companies (Special Provisions) Repeal Act, 2003 (1 of 2004), the profits for the period commencing from the tax year in which such company has become a sick industrial company and ending with the tax year during which the entire net worth of such company becomes equal ....
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....) for the tax year or any of the preceding tax years, and relatable to such investment or asset, in the tax year in which the said investment or asset is retired, disposed, realised or otherwise transferred; (ii) the distribution referred to in columns A and B of serial number 2 of the said Table shall be the distribution of non-cash assets to shareholders in a demerger as per Appendix A of the Indian Accounting Standards 10; (iii) the amount referred to in columns A and B of serial number 4 of the said Table shall be the amount which is relatable to the asset or investment referred to in clause (t)(vi)(B) to (E) for the tax year in which such asset or investment is retired, disposed, realised or otherwise transferred; (iv) the amount referred to in columns A and B of serial number 5 of the said Table shall be the transition amount which is relatable to the foreign operations referred to in clause (t)(vi)(F) for the tax year in which such foreign operation is disposed or otherwise transferred. (f) For the purposes of book profit under clause (c), every company shall prepare its statement of profit and loss for the relevant tax year in the following man....
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.... before the 31st March, 2026,] the Assessing Officer shall, on an application made to him in this behalf by the assessee,-- (I) recompute the book profit of the past year or years and tax payable under this sub-section, if any, by the assessee during the tax year in such manner, as may be prescribed; and (II) the provisions of section 287 shall, so far as may be, apply and the period of four years specified in sub-sections (7) and (8) of that section shall be reckoned from the end of the tax year in which the said application is received by the Assessing Officer. (j) Irrespective of anything contained in any other provisions of this Act, no interest shall be payable to an assessee on the refund arising on account ^3[of clause (i)]. (k) Nothing contained in clause (a) shall affect the determination of the amounts, in relation to the relevant tax year, to be carried forward to the subsequent year or years under the provisions of section 33(11) or 111 or 112(1) or 113 or 115. (l) The provisions of this sub-section shall not be applicable to any assessee, being a foreign company, where-- (i) the assessee is a resident of a country or a specified t....
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....as assigned to it in section 2(h) of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (vi) "transition amount" means the amount or the aggregate of the amounts adjusted in the other equity (excluding capital reserve and securities premium reserve) on the convergence date, but not including the following:- (A) amount or aggregate of the amounts adjusted in the other comprehensive income on the convergence date which shall be subsequently re-classified to the profit or loss; (B) revaluation surplus for assets as per the Indian Accounting Standards 16 and Indian Accounting Standards 38 adjusted on the convergence date; (C) gains or losses from investments in equity instruments designated at fair value through other comprehensive income as per the Indian Accounting Standards 109 adjusted on the convergence date; (D) adjustments relating to items of property, plant and equipment and intangible assets recorded at fair value as deemed cost as per paragraphs D5 and D7 of the Indian Accounting Standards 101 on the convergence date; (E) adjustments relating to investments in subsidiaries, joint ventures and associates recorde....
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....ancial Services Centre. (c) The provisions of this sub-section shall apply to a person who has claimed any deduction under any section (other than section 149) included in Chapter VIII-C or section 46. (d) The provisions of this sub-section shall not apply to-- (i) a person, who has exercised the option under section 203(5) or section 204(2); (ii) a person, whose income-tax payable in respect of the total income of such person is computed under section 202(1); (iii) an individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person referred to in section 2(77)(g), if the adjusted total income of such person does not exceed twenty lakh rupees; or (iv) any specified fund referred to in Schedule VI (Note 1). (e) Where any tax is paid under clause (a) by an assessee, then, credit shall be allowed to him of an amount which shall be the excess of alternate minimum tax over the regular income tax payable of that year. (f) While allowing credit under clause (e),-- (i) no interest shall be payable on the tax credit so allowed; and (ii....
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.... (iii) such carry forward or set off of tax credit shall not be allowed beyond the fifteenth tax year immediately succeeding the tax year in which the tax credit first became allowable under section 115JAA of the Income-tax Act, 1961 (43 of 1961). (c) Where, as a result of any order passed under this Act, tax payable under this Act is decreased or increased, as the case may be, tax credit allowed to be set off under clause (b) shall also be decreased or increased, accordingly. (d) In case of conversion of a private company or unlisted public company into a limited liability partnership under the Limited Liability Partnership Act, 2008 (6 of 2009), the provisions of clauses (a) and (b) shall not apply to the successor limited liability partnership. (4) (a) The provisions of this sub-section shall be applicable only to an assessee, being a foreign company. (b) Where, any amount of credit in respect of tax paid was allowed to be carried forward to the assessee under the provisions of section 115JAA of the Income-tax Act, 1961 (43 of 1961), as on 31st March, 2026,- (i) such tax credit shall be carried forward and set off in a tax year, when tax payable on the total....
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....026 w.e.f. 01-04-2026 before it was read as, "(m) Where any tax is paid under clause (a) by an assessee, then, credit shall be allowed to him of an amount in excess of such minimum alternate tax over the tax payable by such assessee on his total income computed as per the other provisions of this Act for that tax year. (n) While allowing credit under clause (m),-- (i) no interest shall be payable on the tax credit so allowed; and (ii) where tax credit in respect of any income-tax paid in any country or specified territory outside India, under section 159(1) or (2), allowed against the minimum alternate tax exceeds such tax credit admissible against the tax payable by the assessee on its income as per the other provisions of this Act, then, while computing the credit under clause (m), such excess amount shall be ignored. (o)(i) The tax credit determined under clause (m) shall be carried forward, and-- (A) set off in a year, when tax payable on the total income computed as per the provisions of this Act exceeds the minimum alternate tax; and (B) such set off in respect of brought forward tax credit shall be allowed f....