MAT or AMT applicability on LTCG or STCG

Taxation
1

@Quicko
Is MAT or AMT applicable on LTCG or STCG on Shares?

2

Hello @Nsingh,

MAT applies only to companies and AMT is applicable to everyone other than companies.

MAT is applicable on LTCG and STCG of shares. In case of AMT, it will be applicable only if deductions u/s 10AA, 35AD and 80IA to 80RRB.

Hope this helps!

3

@Quicko

It’s means if one have ₹ 1 cr income from ltcg on shares (assuming other income of ₹ 2.5 lacs), it will be taxable @ 10% only (and not 15%; i.e. no implications of AMT) ?

4

Hello @Nsingh,

Yes, the ₹1 crore LTCG will be taxed at 10% only and no AMT provisions will be applicable.

Hope this clarifies!

5

Thanks @Quicko for promt reply.

Moreover, what about partnerships firm (not LLP)?

6

Hello @Nsingh,

For partnerships also, LTCG will be taxed at 10% and AMT provisions won’t apply.

Hope this helps!