Comparison between MAT and AMT under the Finance Bill 2011-2012

MAT AMT
Section 115JB(1) Chapter – XII-B Section 115JC Chapter XII-BA
Provision A Company is required to pay a Where the regular tax payable for a previous year by
minimum alternate Tax (MAT) on its a limited liability partnership is less than the alternate
book profit, if the income tax payable minimum tax payable for such previous year, the
on the total income, as computed under adjusted total income shall be deemed to be the
the income tax act in respect of any total income of such limited liability partnership and
previous year relevant to the LLP shall be liable to pay income tax on such total
assessment year commencing on or income.
st
after 1 April 2011, is less than the
MAT. “Adjusted total income shall be total income as
increased by the deductions claimed under any
section included in chapter VI-A C (deductions
in respect of certain income and deductions claimed
under section 10AA (Deduction available to SEZ
units).

Regular Tax means the tax payable under the income

Rate 18.5% + Surcharge (5%) + Education
Cess (3%) + i.e 20%
Tax The tax credit to be allowed shall be the
Credit difference of the Minimum Alternate tax
paid for any assessment year and the
amount of tax payable by the assessee
on his total income computed in
accordance with the other provisions of
this Act.
Carrry Tax credit will be carried forward for a
Forward maximum period of 10 years from the
of Tax year in which such credit arose.
Credit
tax act for LLPs excluding the provisions of chapter
115JC.
18.5% + Education Cess (3% ) i.e 19.05%
(Surcharge is not applicable on Limited Liability
partnerships)
The tax credit is allowed to the extent of the excess of
the alternate minimum tax paid over the regular
income tax.
Tax credit will be carried forward for a maximum
period of 10 years from the year in which such credit
arose.