Addresses the mechanism for granting tax credit for MAT/AMT paid in excess of regular tax liability by Other than Corporate : Clause 206(13)-(16) of the Income Tax Bill, 2025 Vs. Section 115JD of the Income-tax

MAT/AMT credit mechanism permits excess minimum tax paid to be carried forward and set off against later regular tax liabilities.

MAT/AMT credit under Clause 206(13) is the excess of minimum tax paid over regular tax payable, available automatically to assessees covered by the provision. The credit carries two limitations: no interest on the credit and disregard of any foreign tax credit that is excessive relative to regular tax. Set off of the credit is permitted only when regular tax exceeds MAT/AMT, limited to that excess, with unused credit carried forward for a defined period, and any credit must be adjusted to reflect changes from reassessment or appellate orders.