Alternative Minimum Tax, eligible & exemption

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Hi,

What is Alternative Minimum Tax applicability? Who is eligible for the exemptions?

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AMT is a minimum tax that is leviable alternative to normal tax. Rate of AMT is 18.5% (plus applicable surcharge and cess). AMT is a tax levied on ‘adjusted total income’ in a FY wherein tax on normal income is lower than AMT on Adjusted total income. So, irrespective of normal tax, AMT has to be paid by taxpayers to whom AMT provisions apply.

AMT will only be applicable to those taxpaying individuals whose total adjusted income exceeds Rs. 20,00,000. Additionally, for AMT to be applicable, these individuals should have claimed deductions under Sections 80H to 80RRB (excluding Section 80P), Section 35AD and Section 10AA of the Income Tax Act.