Fillable Online Net Minimum Tax on Exclusion Items Fax 2025

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Exclusion items are only the following AMT adjustments and preferences: certain itemized deductions (including any investment interest expense reported on Schedule E), certain tax-exempt interest, depletion, the section 1202 exclusion, the standard deduction, and any other adjustments related to exclusion items.
How is MAT calculated? MAT is calculated as 15% of the book profit of the tax assesse. Under existing rules, book profit is calculated as per Section 115JB of the Income Tax Act, 1961.
How is the AMT calculated? The AMT is the excess of the tentative minimum tax over the regular tax. Thus, the AMT is owed only if the tentative minimum tax for the year is greater than the regular tax for that year. The tentative minimum tax is figured separately from the regular tax.
How does the AMT work? Start with taxable income. Calculate your taxable income as you would normally, or enter the amount from Form 1040, line 15. Make required adjustments. Subtract your AMT exemption. Multiply the result by your AMT tax rate.
Steps to Calculate AMT Determine Adjusted Total Income (ATI): Adjusted total income is calculated by: Apply the AMT Rate: Multiply the adjusted total income by the AMT rate of 18.5% (plus applicable surcharge and cess). Compare Normal Tax and AMT: If the normal tax liability is higher, pay the normal tax.
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The AMT is the excess of the tentative minimum tax over the regular tax. Thus, the AMT is owed only if the tentative minimum tax for the year is greater than the regular tax for that year. The tentative minimum tax is figured separately from the regular tax.
Form 4626 is used to determine whether a corporation is an applicable corporation under section 59(k) and to calculate Corporate Alternative Minimum Tax (CAMT) under section 55 for applicable corporations.

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