Rationalisation of Provisions relating to tax credit for Minimum Alternate
Tax and Alternate Minimum Tax -
Section 115JAA contains provisions regarding
carrying forward and set off of tax credit in respect of Minimum Alternate Tax
(MAT) paid by companies under section 115JB.
Currently , the tax credit can be
carried forward upto tenth assessment years. With a view to provide relief to
the assessees paying MAT, it is proposed to amend section 115JAA to provide
that the tax credit determined under this section can be carried forward up to
fifteenth assessment years immediately succeeding the assessment years in which
such tax credit becomes allowable.
Further, similar amendment is proposed in
section 115JD so as to allow carry forward of Alternate Minimum Tax (AMT) paid
under section 115JC upto fifteenth assessment years in case of non corporate
assessee.
It is also proposed to amend section 115JAA and
115JD so as to provide that the amount of tax credit in respect of MAT AMT
shall not be allowed to be carried forward to subsequent year to the extent
such credit relates to the difference between the amount of foreign tax credit
(FTC) allowed against MAT AMT and FTC allowable against the tax computed under
regular provisions of Act other than the provisions relating to MATAMT.
These
amendments will take effect from 1st April, 2018 and will, accordingly , apply
in relation to the assessment year 2018-19 and subsequent years. [Clauses 46
& 48]
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