/ Section 115JC AMT Checklist · Updated 2026-10-22
Section 115JC AMT 18.5% Individual + LLP India 2026, individual / LLP Alternate Minimum Tax parallel.
Section 115JC Alternate Minimum Tax (AMT) applies to individuals, HUFs, LLPs, and partnership firms (NOT companies - that's MAT under 115JB). AMT 18.5% on 'adjusted total income' when standard tax under specific deductions is lower. Parallel to MAT but with distinct scope + rate. Here's the complete 2026 Section 115JC framework.
DC
Written by CA Durgesh Chavda
Chartered Accountant (ICAI) · Founder, Bharat Quantum Prospera · US incorporation, India-US DTAA, FEMA ODI, NRI taxation, cross-border structuring · LinkedIn
/ Section 115JC AMT core
The 18.5% rate.
- AMT applies to: individuals + HUFs + LLPs + Partnership firms (NOT companies - MAT under 115JB).
- Rate: 18.5% of adjusted total income + applicable surcharge + 4% cess.
- Adjusted total income: regular total income + specific deductions added back (Section 10AA SEZ, Section 35AD investment-linked, Section 80 deductions except 80P / 80IAC / 80IAB specifically).
- Applies when: regular tax on income is LOWER than AMT on adjusted total income.
- If AMT applies: taxpayer pays AMT; difference becomes AMT credit (carried forward 15 years).
/ Who's exempt + specific carve-outs
The exceptions.
- Individual + HUF: AMT exempt if adjusted total income < INR 20 lakh.
- Companies: subject to MAT (Section 115JB) not AMT.
- Specific entities + specific income (per Section 115JC(2)): certain exemptions.
- Section 80-IAC Startup India + Section 80IAB SEZ developer: specific interaction with AMT.
/ Common Section 115JC scenarios
Where it matters.
- LLP with Section 10AA SEZ deduction: regular tax low; AMT applies.
- Partnership firm with substantial Section 80 deductions.
- Individual with Section 35AD investment-linked deduction (specified business).
- HUF with substantial agricultural income exemption + other specific income.
- LLP opting out of Section 115BAD alternative (29% rate without specific deductions).
/ Form 29C + CA certification
The compliance.
- Form 29C: Chartered Accountant certificate on adjusted total income + AMT computation.
- Filed with ITR (ITR-3 for individuals / HUFs; ITR-5 for firms / LLPs).
- CA certifies adjusted total income computation + AMT comparison.
- ICAI UDIN mandatory.
- If AMT applies: AMT paid; AMT credit carried forward 15 years.
Last updated: 2026-10-22.
/ Ready when you are
LLP / Partnership firm / individual with specific deductions?
Section 115JC AMT + Form 29C + Section 115BAD opt-in modelling + credit tracking. BQP LLP + Partnership tax engagement.
FAQ
Common questions, answered.
What's Section 115JC AMT?
Alternate Minimum Tax at 18.5% applicable to individuals + HUFs + LLPs + Partnership firms (NOT companies - companies have MAT at 15% under Section 115JB). AMT applies when regular tax is lower than 18.5% of 'adjusted total income' (regular income + specific deductions added back).
Does AMT apply to small individuals?
Individual + HUF: AMT exempt if adjusted total income < INR 20 lakh. Above INR 20 lakh with specific deductions (10AA / 35AD / Section 80), AMT may apply. LLPs + Partnership firms: AMT applies regardless of threshold.
What's Form 29C and when is it filed?
Form 29C: CA certificate on adjusted total income + AMT computation. Filed with ITR by taxpayers to whom Section 115JC applies. ICAI UDIN mandatory. For LLPs + Partnership firms with specific Section 80 / 10AA / 35AD claims.
Can AMT credit be carried forward?
Yes - 15 years. If AMT paid exceeds regular tax in a year, excess becomes AMT credit. In future years when regular tax exceeds AMT, AMT credit can be set off against regular tax (up to extent of regular tax). Prevents double-taxation.
Is Section 115BAD a way around AMT for LLPs?
Section 115BAD: 29% concessional corporate tax for LLPs that opt out of specific deductions. If opted in, AMT (115JC) does NOT apply. Trade-off: forfeit Section 10AA + specific Chapter VI-A deductions for lower rate + MAT exemption. Decision modelling similar to Section 115BAA for companies.
Does BQP handle Form 29C + LLP tax structuring?
Yes - LLP + Partnership firm + individual tax engagement. Section 115JC AMT analysis + Form 29C CA certification + Section 115BAD opt-in modelling for LLPs + AMT credit carry-forward tracking. For LLPs + Partnership firms with specific deduction stacks. WhatsApp +91 78018 87130.
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