Section - 115JAA and 115JD - Rationalisation of
Provisions relating to tax credit for Minimum Alternate Tax and Alternate
Minimum Tax –
Under the existing provision tax
credit in respect of MAT/AMT can be carried forward upto 10th assessment year. The amendment seeks to
provide that the tax credit determined under this section can be carried
forward upto 15th assessment year immediately succeeding the
assessment year in which such credit is allowable.
It is also proposed to amend the
section so as to provide that the amount of tax credit in respect of MAT/AMT
shall not be allowed to the extent such credit relates to the difference between the amount of Foreign
Tax credit allowed and the Foreign Tax credit allowable against the tax
computed under the regular provisions.
The amendment will take effect
from 1st April 2018 relevant to assessment year 2018-19.