Explain the provisions of the Income-tax Act, 1961 relating to applicability of Alternative Minimum Tax (AMT), tax credit for AMT, set off and carry forward of AMT.

Applicability of Alternate Minimum Tax 'AMT' As per the provision of Section 115JC of the Income Tax Act, 1961, where the regular income-tax payable for a previous year by a person, other than a company, is less than the alternate minimum tax payable for such previous year, the adjusted total income shall be deemed to be the total income of that person for such previous year and he shall be liable to pay income-tax on such total income at the rate of @ 18.50% (+ applicable surcharge + health and education cess) on adjusted total income Thus, 'Alternate Minimum Tax' shall be applicable to all non-corporate assesses i.e. Individual, HUF, AOP/BOI, an artificial juridical person, Partnership, Limited Liability Partnership etc. However, AMT provisions are not applicable to an Individual, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI) and artificial juridical person whose adjusted total income does not exceed ₹20,00,000. Tax Credit for Alternate Minimum Tax U/s 115JD The credit for tax paid by a person under section 115JC shall be allowed to him in accordance with the provisions of this section. The tax credit of an assessment year to be allowed under sub-section (1) shall be the excess of alternate minimum tax paid over the regular income-tax payable of that year: However where the amount of tax credit in respect of any income-tax paid in any country or specified territory outside India under section 90 or section 90A or section 91, allowed against the alternate minimum tax payable, exceeds the amount of the tax credit admissible against the regular income-tax payable by the assessee, then, while computing the amount of credit under this sub-section, such excess amount shall be ignored. No interest shall be payable on tax credit allowed under sub-section (1). Amount of tax credit of AMT carried forward and set off The amount of tax credit determined under sub-section (2) shall be carried forward and set off in accordance with the provisions of sub-sections (5) and (6) but such carry forward shall not be allowed beyond the 15 assessment year immediately succeeding the assessment year for which tax credit becomes allowable under sub-section (1). In any assessment year in which the regular income-tax exceeds the alternate minimum tax, the tax credit shall be allowed to be set off to the extent of the excess of regular income-tax over the alternate minimum tax and the balance of the tax credit, if any, shall be carried forward. If the amount of regular income-tax or the alternate minimum tax is reduced or increased as a result of any order passed under this Act, the amount of tax credit allowed under this section shall also be varied accordingly.