A limited liability partnership (LLP) has following income for the Assessment year 2021-22: Particulars Amount (₹) Profit from business eligible for deduction @ 100% of profits under section 80-IA 12,50,000 Profit from o

Computation of Taxable Income of LLP AY 2021-22 Particulars Amount Income from Business & Profession Profit from eligible business u/s 80-IA 12,50,000 Profit from other business 17,50,000 Income from Capital Gain LTCG on sale of House Property 11,20,000 Gross Total Income 41,20,000 Less: Deduction u/s 80-IA 12,50,000 Taxable Income 28,70,000 Computation of Tax Liability (as per normal provision) Particulars Amount Tax on LTCG @ 20% on ₹11,20,000 2,24,000 Tax on Remaining ₹17,50,000 @ 30% 5,25,000 7,49,000 Add: Health and Education cess @ 4% 29,960 Total Tax Liability 7,78,960 Computation of Adjusted Total Income u/s 115JC Particulars Amount Taxable Income as per Income Tax Act, 1961 28,70,000 Add: Deduction u/s 80-IA 12,50,000 Adjusted Total Income 41,20,000 Computation of Tax (as per AMT) Particulars Amount Tax as per AMT @ 18.5% of Adjusted Total Income 7,62,200 Add: Health and Education cess @ 4% 30,488 Total Tax Liability 7,92,688 Computation of Net Tax Liability of LLP Particulars Amount Tax as per Normal Provision 7,78,960 Tax as per AMT Provision 7,92,688 Tax Payable (higher of above two) 7,92,688 Set-off and Carry forward of AMT Credit: Opening AMT Credit of ₹14,650 will not be set-off from current year tax liability, because AMT Credit shall be allowed to set-off in a year when tax as per normal provision is higher than AMT Tax. In the given question, AMT Tax is higher than Normal tax, so opening AMT is not to be set-off in current year Tax liability. Current year AMT Credit = ₹7,92,688 - ₹7,78,960 = ₹13,728 Total AMT Credit carry forward = ₹14,650 + ₹13,728 = ₹28,378