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TMI BlogThe Interplay of Special and General Provisions : Clause 206(12) of Income Tax Bill, 2025 Vs. Section 115JE of Income Tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of Clause 206 in the Income Tax Bill, 2025, continues this legacy, providing an elaborate framework for MAT and AMT, while also laying down the mechanics for their computation, exceptions, and related procedural requirements. Within this comprehensive provision, Clause 206(12) assumes a pivotal role by acting as a "savings" or "application" clause, stipulating the continued applicability of other provisions of the Act to persons covered under Clause 206, except where expressly overridden. This is conceptually similar to Section 115JE of the Income-tax Act, 1961, which serves a parallel function within the older statutory framework, particularly in the context of AMT for non-corporate entities. This commentary provides a detailed legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interpretative disputes about the applicability of general provisions (e.g., procedural rules, penalty provisions, appeal mechanisms, etc.) to MAT/AMT cases. Detailed Analysis of Clause 206(12) Clause 206(12) is a classic example of a "non-obstante cum saving" provision. The phrase "Save as otherwise provided in this section" means that wherever Clause 206 prescribes a special rule (e.g., computation of book profit, rates of MAT/AMT, exclusions), that special rule overrides the general Act. In all other respects, the Act applies as usual. The implications of this are multi-fold: * Scope of Application: Every assessee to whom Clause 206 applies-companies, co-operative societies, units in International Financial Services Centres, and oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... des interest on refunds under sub-clause (8)). * Set-off and Carry Forward: The set-off and carry forward of losses and unabsorbed depreciation are regulated by Clause 206(10) and (15), but, subject to these, the general regime applies. * Tax Credits: MAT/AMT credit mechanisms are specifically provided in Clause 206(13)-(16), but general provisions relating to credits, if not inconsistent, would apply. Exceptions and Overriding Effects The opening words "Save as otherwise provided in this section" are crucial. They ensure that wherever Clause 206 lays down a different rule (e.g., computation of book profit, carry forward of MAT credit for 15 years, etc.), those special rules prevail over the general Act. For instance: * Clause 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overrides the general law. Comparative Analysis: Clause 206(12) vs Section 115JE 1. Placement and Scope * Section 115JE: Located in Chapter XII-BA, which deals with "Special Provisions Relating to Certain Persons Other Than a Company." It applies specifically to the AMT regime, primarily for LLPs and certain non-corporate assessees. * Clause 206(12): Embedded within a single, consolidated section governing both MAT and AMT for a wide range of entities, including companies, co-operative societies, and other non-corporate entities. 2. Wording and Breadth * Section 115JE: Applies "save as otherwise provided in this Chapter," i.e., the overriding effect is limited to the chapter, which includes multiple sections on AMT. * Clause 206( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actical effect will depend on the clarity and completeness of Clause 206 itself. 6. Evolution and Legislative Policy * Section 115JE: Was a necessary adjunct to the introduction of AMT for non-corporate entities in 2011, mirroring the approach taken in the MAT regime for companies. * Clause 206(12): Reflects a policy shift towards consolidation and uniformity, bringing MAT and AMT under a single, harmonized framework, and ensuring that the application clause is consistently worded for all affected assessees. Comparative Table: Clause 206(12) vs. Section 115JE Aspect Clause 206(12) in the Income Tax Bill, 2025 Section 115JE of the Income-tax Act, 1961 Wording "Save as otherwise provided in this section, all other provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the special rules could lead to interpretive disputes about the applicability of general provisions. Conclusion Clause 206(12) in the Income Tax Bill, 2025, serves as a crucial link between the special MAT/AMT regime and the general provisions of the Income Tax Act. Its function as a "saving clause" ensures that, except where specifically overridden, the entire machinery of the Act applies to MAT/AMT assessees. Compared to Section 115JE of the Income-tax Act, 1961, Clause 206(12) is broader in scope, more precise in its drafting, and better integrated into a consolidated special regime. The shift towards a more unified approach reflects evolving legislative policy and aims to enhance legal certainty and administrative efficiency. Howev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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