Tax credit for alternate minimum tax.

115JD. (1) The credit for tax paid by aperson under section 115JC shall be allowed to him in accordance with the provisions of this section.

(2) 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.

¹Provided 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.

(3) No interest shall be payable on tax credit allowed under sub-section (1).

(4) 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 ²[fifteenth] assessment year immediately succeeding the assessment year for which tax credit becomes allowable under sub-section (1).

(5) 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.

(6) 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.

⁴[(7) The provisions of this section shall not apply to a person, where––

(i) such person has exercised the option referred to in sub-section (5) of section 115BAC or sub-section (5) of section 115BAD or sub-section (5) of section 115BAE; or

(ii) income-tax payable in respect of the total income of such person is computed under sub-section (1A) of section 115BAC.]

NOTE:-

1.Inserted by The Finance Act, 2017 w.e.f 01/04/2018

2.Subsituted.for "tenth" by The Finance Act, 2017 (w.e.f. 1-4-2018).

3.Inserted by The Finance Act, 2020. Dated 01st February, 2020 Amendment Effective From 01st April,2021

4.Substituted by The Finance Act, 2023 dated 01.02.2023 w.e.f 01.04.2024.

for sub-section(7)-

³[(7) The provisions of this section shall not apply to a person who has exercised the option referred to in section 115BAC or section 115BAD.]

The following shall be substited namely-

“(7) The provisions of this section shall not apply to a person, where––

(i) such person has exercised the option referred to in sub-section (5) of section 115BAC or sub-section (5) of section 115BAD or sub-section (5) of section 115BAE; or

(ii) income-tax payable in respect of the total income of such person is computed under sub-section (1A) of section 115BAC.”.