GUIDANCE NOTE ON ALTERNATE MINIMUM TAX U/S 115JC BY ICAI

Taxes like Minimum Alternate tax on companies and Alternate minimum tax on limited liability partnerships were not levied on other business organizations like partnership firms, sole proprietorship, AOP etc, the Government thought it fit to widen the tax base vis-à-vis profit linked deductions. Accordingly, in the year 2012 the provisions of Alternate Minimum tax were made applicable to all non-corporate entities having adjusted total income exceeding rupees twenty lakhs. Further, to effectively implement the provisions of this section, the Government required the noncorporate assessee to obtain a report from the chartered accountant certifying the adjusted total income and alternate minimum tax computed thereon as per the provisions of the Act.

Considering the fact that this report requires the chartered accountant to certify the adjusted total income which is a resultant of total income of the assessee, the Direct Taxes Committee of ICAI felt the need of providing guidance with regard to this report to the members and releases this Guidance Note.

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