Section 115JC Income Tax Act 1961: Alternate Minimum Tax for Persons Other Than Companies

Section 115JC of the Income-tax Act, 1961 contained the Alternate Minimum Tax (AMT) mechanism for specified persons other than companies. From 1 April 2026, the Income-tax Act, 2025 replaced the 1961 Act for current tax years, while the repealed Act continues to govern earlier tax years and proceedings to the extent protected by the transition and savings provisions.

Important legal update from 1 April 2026 For Tax Year 2026-27 onwards, the current AMT framework is contained in section 206(2) of the Income-tax Act, 2025. Section 115JC remains important for tax years beginning before 1 April 2026 and for proceedings preserved by section 536 of the Income-tax Act, 2025.

18.5%General AMT rate under the section 115JC framework.

15%AMT rate for a co-operative society.

9%AMT rate for a qualifying IFSC unit deriving income solely in convertible foreign exchange.

What did Section 115JC provide?

Section 115JC formed part of Chapter XII-BA of the Income-tax Act, 1961. In substance, it required a covered non-company taxpayer to compare the income-tax payable under the regular provisions with AMT computed on adjusted total income. Where regular income-tax was lower than AMT, adjusted total income was deemed to be the total income and tax became payable under the AMT mechanism.

Tax payable under the AMT mechanism = the higher applicable liability after comparing regular income-tax with AMT on adjusted total income.

The general AMT rate was 18.5 per cent. Special rates applied to qualifying IFSC units and co-operative societies, as explained below. Applicable surcharge and health and education cess are separate from the base AMT rate.

Who was covered by the Section 115JC AMT provisions?

Section 115JC had to be read with section 115JEE. Broadly, Chapter XII-BA applied where a person claimed specified deductions, including deductions under Chapter VI-A under the heading "C - Deductions in respect of certain incomes" other than section 80P, deduction under section 10AA, or deduction under section 35AD.

For an individual, Hindu undivided family, association of persons, body of individuals or an artificial juridical person, the Chapter did not apply where adjusted total income did not exceed Rs. 20 lakh. Other covered non-company persons were not given this Rs. 20 lakh threshold merely by reason of their status.

The Chapter also contained exclusions. In the law applicable immediately before repeal, section 115JC did not apply where the relevant concessional regime under section 115BAC, 115BAD or 115BAE applied in the manner specified by the provision, including cases where income-tax was computed under section 115BAC(1A). Section 115JEE separately excluded a specified fund referred to in the relevant provision of section 10.

How was adjusted total income computed?

Under section 115JC(2), adjusted total income started with total income computed before giving effect to Chapter XII-BA and added back specified deductions.

Adjustment	Treatment under Section 115JC
Chapter VI-A, heading C deductions	Add deductions claimed under the covered sections, other than section 80P.
Section 10AA	Add the deduction claimed under section 10AA.
Section 35AD	Add the section 35AD deduction after reducing depreciation allowable under section 32 as if the section 35AD deduction had not been allowed for those assets.

This computation produced the "adjusted total income" on which AMT was calculated.

AMT rates under Section 115JC

Taxpayer or income category	Base AMT rate
General covered person other than a company	18.5%
Co-operative society covered by section 115JC(4)(ii)	15%
Unit located in an International Financial Services Centre deriving income solely in convertible foreign exchange	9%

The statutory definitions connected with these rates appeared in section 115JF. "Regular income-tax" broadly meant income-tax payable on total income under the Act other than Chapter XII-BA. "Alternate minimum tax" meant tax computed on adjusted total income at the applicable 18.5 per cent, 15 per cent or 9 per cent rate.

Accountant report and Form 29C under the 1961 Act

Section 115JC(3) required every person to whom the section applied to obtain a report from an accountant certifying that adjusted total income and AMT had been computed in accordance with Chapter XII-BA. Under the Income-tax Rules, 1962, the prescribed report was Form 29C.

The report was required before the specified date referred to in section 44AB and had to be furnished by that date. For legacy matters, the exact applicable form, due date and procedural requirement should be checked for the relevant assessment year.

Current AMT law from 1 April 2026: Section 206(2) of the Income-tax Act, 2025

The Income-tax Act, 2025 came into force on 1 April 2026 and repealed the Income-tax Act, 1961, subject to section 536 on repeal and savings. Accordingly, Section 115JC is no longer the operative AMT provision for income arising in Tax Year 2026-27 and later years.

The current AMT framework for persons other than companies is in section 206(2) of the Income-tax Act, 2025. The new Act preserves the basic AMT concept but reorganises and renumbers the provisions. Official guidance describes the current base rates as 18.5 per cent generally, 15 per cent for co-operative societies and 9 per cent for a qualifying IFSC unit deriving income solely in convertible foreign exchange.

Form 29C has a new counterpart

Under the Income-tax Rules, 2026, Form 67 is the report for computation of adjusted total income and AMT for the purposes of section 206(2). It corresponds to old Form 29C under sections 115JC and 115JD of the repealed 1961 Act.

Current adjusted total income concept

Under the 2025 Act, official guidance states that AMT generally applies to a non-corporate taxpayer claiming specified deductions under Chapter VIII-C, other than section 149, or a deduction under section 46 subject to the depreciation adjustment under section 33. The Rs. 20 lakh adjusted-total-income threshold continues for an individual, HUF, AOP, BOI and specified artificial juridical person. The new law should therefore be used for Tax Year 2026-27 onwards rather than mechanically applying the old section numbers.

Why Section 115JC still matters

Section 536 of the Income-tax Act, 2025 protects the operation of the repealed law for earlier periods. Proceedings concerning a tax year beginning before 1 April 2026 may continue under the repealed Act as provided by the savings clause. Existing AMT credit under section 115JD is also dealt with by the transition provisions. Therefore, Section 115JC remains relevant when dealing with pre-1 April 2026 tax years, pending proceedings and historical AMT computations.

For legacy matters, Section 115JC should be read with the surrounding AMT provisions, especially sections 115JD to 115JF.

Provision	Subject
Section 115JD	Tax credit for alternate minimum tax.
Section 115JE	Application of other provisions of the Act.
Section 115JEE	Application of Chapter XII-BA to certain persons.
Section 115JF	Definitions and interpretation for Chapter XII-BA.

Updated: 28 September 2026. This page explains the statutory framework for general information. For a return, assessment, appeal or pending proceeding, apply the law and forms governing the relevant tax year and facts.