CMA Intermediate · Direct and Indirect Taxation · Taxation of Individuals (including AMT) and HUF
Under the Income-tax Act, 2025, an individual who is liable to the Alternative Minimum Tax (AMT) has to compute it on adjusted total income at which rate (before surcharge and cess)?
The AMT rate for an individual is 18.5% of adjusted total income, with surcharge and cess added as applicable. The lower 15% rate applies only to cooperative societies, and the 25% and 30% figures are not AMT rates at all.
- A15%
- B18.5%Correct
- C25%
- D30%
Explanation
AMT on a non-corporate person such as an individual is levied at 18.5% of adjusted total income, plus surcharge and cess as applicable. The 15% rate is for cooperative societies, so it is wrong for an individual. The other rates are not AMT rates.
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