Amendment of section 115JD.
48. In section 115JD of the Income-tax Act, with effect from the 1st day of April, 2018,-
(a) in sub-section (2), the following proviso shall be inserted, namely:-
“Provided that 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.”;
(b) in sub-section (4), for the words “tenth assessment year”, the words “fifteenth assessment year” shall be substituted.
Notes on Clauses:
Clause 48 of the Bill seeks to amend section 115JD of the Income-tax Act relating to tax credit for alternate minimum tax.
Sub-section (2) of the said section provides that tax credit of an assessment year shall be the excess of the alternate minimum tax paid over the regular income-tax payable for that year and sub-section (4) provides that such tax credit is allowed to be carried forward for a period of ten years.
It is proposed to amend the said sub-sections so as to provide that where the amount of tax credit in respect of any income-tax paid in any country or specified territory outside India allowed against the alternate minimum tax payable exceeds the amount of tax credit admissible against the regular income-tax payable by the assessee on his income in accordance with the other provisions of this Act, such excess amount shall be ignored, while computing the amount of credit and the period for carry forward of tax credit shall be extended from tenth assessment year to fifteenth assessment year.
These amendments will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-2019 and subsequent years.
