Amended and updated notes on section 115JD of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to tax credit for alternate minimum tax.
Chapter XIIBA (Sections 115JC to 115JF) of the Income Tax Act 1961 deals with the provisions related to special provisions relating to certain limited liability partnerships. Section 115JD of IT Act 1961-2023 provides for tax credit for alternate minimum tax.
Recently, we have discussed in detail section 115JC (Special provisions for payment of tax by certain persons other than a company) of IT Act 1961. Today, we learn the provisions of section 115JD of Income-tax Act 1961. The amended provision of section 115JD is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 115JD of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.
Section-115JD: Tax credit for alternate minimum tax
Section 115JD(1) of Income Tax Act
The credit for tax paid by a person under section 115JC shall be allowed to him in accordance with the provisions of this section.
Section 115JD(2) of Income Tax Act
The tax credit of an assessment year to be allowed under sub-section (1) shall be the excess of alternate minimum tax paid over the regular income-tax payable of that year:
Provided that where the amount of tax credit in respect of any income-tax paid in any country or specified territory outside India under section 90 or section 90A or section 91, allowed against the alternate minimum tax payable, exceeds the amount of the tax credit admissible against the regular income-tax payable by the assessee, then, while computing the amount of credit under this sub-section, such excess amount shall be ignored.
Section 115JD(3) of Income Tax Act
No interest shall be payable on tax credit allowed under sub-section (1).
Section 115JD(4) of Income Tax Act
The amount of tax credit determined under sub-section (2) shall be carried forward and set off in accordance with the provisions of sub-sections (5) and (6) but such carry forward shall not be allowed beyond the fifteenth assessment year immediately succeeding the assessment year for which tax credit becomes allowable under sub-section (1).
Section 115JD(5) of Income Tax Act
In any assessment year in which the regular income-tax exceeds the alternate minimum tax, the tax credit shall be allowed to be set off to the extent of the excess of regular income-tax over the alternate minimum tax and the balance of the tax credit, if any, shall be carried forward.
Section 115JD(6) of Income Tax Act
If the amount of regular income-tax or the alternate minimum tax is reduced or increased as a result of any order passed under this Act, the amount of tax credit allowed under this section shall also be varied accordingly.
Section 115JD(7) of Income Tax Act
The provisions of this section shall not apply to a person who has exercised the option referred to in section 115BAC or section 115BAD.
[Sub-section (7) of section 115JD has been inserted w.e.f. 01.04.2021 by the Finance Act, 2020]