An individual has business income of ₹35,00,000 for previous year 2018-19. He for the previous year 2017-18 was subject to Alternate Minimum Tax (AMT) because of claiming deduction under section 80-IE of Income Tax Act,

Computation of Tax Liability for AY 2019-20 of an Individual Particulars Amount (₹) A. Normal Tax Liability on Income of ₹35,00,000 Up to ₹2,50,000 Nil ₹2,50,001 to ₹5,00,000 @ 5% 12,500 ₹5,00,001 to ₹10,00,000 @ 20% 1,00,000 Balance (₹35,00,000 - ₹10,00,000) @ 30% 7,50,000 Total Tax Liability (excluding cess) 8,62,500 Add: Health and Education Cess @ 4% 34,500 Total Normal Tax Liability (A) 8,97,000 B. Alternate Minimum Tax (AMT) AMT @ 19.24% (18.5% + 4% cess) on Adjusted Total Income of ₹35,00,000 6,73,400 C. Tax Payable for AY 2019-20 Tax payable is the higher of Normal Tax Liability (A) or AMT (B). ₹8,97,000 D. AMT Credit Calculation Available AMT Credit from PY 2017-18 ₹5,00,000 AMT Credit utilized in AY 2019-20 (A - B, since A > B) ₹2,23,600 (₹8,97,000 - ₹6,73,400) Balance AMT Credit to be carried forward ₹2,76,400 (₹5,00,000 - ₹2,23,600)