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CS Professional · Advanced Direct Tax Laws and Practice · Computation of Total Income, Tax Liability and Filing of Returns of various Entities excluding Companies

Under section 206(2) of the Income-tax Act, 2025 (applicable from June 2027), what is the general rate of alternate minimum tax on the adjusted total income of a non-corporate assessee, other than an IFSC unit or a co-operative society?

The general alternate minimum tax rate for a non-corporate assessee is 18.5% of adjusted total income. Lower rates apply only to IFSC units (9%) and co-operative societies (15%). The 14% rate belongs to companies under the MAT provision.

  1. A15%
  2. B18.5%Correct
  3. C14%
  4. D9%

Explanation

Section 206(2)(b)(ii)(III) fixes AMT at 18.5% in any case other than an IFSC unit (9%) and a co-operative society (15%). The 14% rate is the MAT rate for companies under section 206(1), so it does not apply to non-corporate persons.

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