(2)(a)Irrespective of anything contained in this Act, where the regular income-tax payable for a tax year by a person, other than a company, is less than the alternate minimum tax payable for such tax year, then,—(i)the adjusted total income shall be deemed to be the total income of that person for such tax year and .(ii)he shall be liable to pay income-tax equal to the alternate minimum tax.(b)For the purposes of this sub-section,—(i)"adjusted total income" shall be the total income before giving effect to clause (a), as increased by deductions claimed, if any, under—(I)any section (other than section 149) included in Chapter VIII-C;(II)section 46 as reduced by depreciation allowable as per the provisions of section 33, as if no deduction was allowed in respect of the assets on which the deduction under that section is claimed.(ii)"alternate minimum tax" means the amount of tax computed on adjusted total income,—(I)in case of an assessee being a unit located in an International Financial Services Centre and deriving its income solely in convertible foreign exchange, at the rate of 9%;(II)in case of an assessee being a co-operative society, at the rate of 15%;(III)in any other case, at a rate of 18.5%;(iii)"regular income-tax" means the income-tax payable for a previous year by a person on his total income in accordance with the provisions of this Act other than the provisions of this sub-section;(iv)"Unit" means a unit established in an International Financial Services Centre.(c)The provisions of this sub-section shall apply to a person who has claimed any deduction under any section (other than section 149) included in Chapter VIII-C or section 46.(d)The provisions of this sub-section shall not apply to––(i)a person, who has exercised the option under section 203(5) or section 204(2);(ii)a person, whose income-tax payable in respect of the total income of such person is computed under section 202(1);(iii)an individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person referred to in section 2(77)(g), if the adjusted total income of such person does not exceed twenty lakh rupees; or(iv)any specified fund referred to in Schedule VI (Note 1).(e)Where any tax is paid under clause (a) by an assessee, then, credit shall be allowed to him of an amount which shall be the excess of alternate minimum tax over the regular income tax payable of that year.(f)While allowing credit under clause (e),––(i)no interest shall be payable on the tax credit so allowed; and(ii)where tax credit in respect of any income-tax paid in any country or specified territory outside India, under section 159(1) or (2), allowed against the alternate minimum tax payable exceeds such tax credit admissible then, while against the regular income-tax payable by the assessee, computing the credit under clause (e), such excess amount shall be ignored.(g)Tax credit determined under clause (e) shall be carried forward and––(i)set off in a year, when the regular income tax exceeds the alternate minimum tax; and(ii)such set off in respect of brought forward tax credit shall be allowed for any tax year to the extent of the excess of regular income tax over the alternate minimum tax for that tax year, and such carry forward shall not be allowed beyond the fifteenth tax year immediately succeeding the tax year in which the tax credit becomes allowable under clause (e).(h)Where as a result of any order passed under this Act, tax payable under this Act is reduced or increased, tax credit allowed under clause (e) shall also be reduced or increased accordingly.(i)Irrespective of anything contained in clause (c) or clause (d), the credit for tax paid under clause (a) shall be allowed in accordance with the provisions of clauses (e), (f), (g) and (h).(j)Every person to which this sub-section applies, shall furnish a report in the prescribed form from an accountant, certifying that the adjusted total income and alternate minimum tax in its case have been computed as per the provisions of this sub-section before the specified date referred to in section 63.
