Section 115JEE Income Tax Act: AMT Applicability and Rs. 20 Lakh Limit

What is Section 115JEE?

Section 115JEE of the Income-tax Act, 1961 determines which non-company taxpayers fall within the Alternate Minimum Tax (AMT) framework in Chapter XII-BA. It must be read together with Section 115JC, which sets out the AMT computation, and Section 115JD, which deals with AMT credit.

The provision is a scope and threshold rule: claiming a specified incentive deduction can bring a person within Chapter XII-BA, subject to the statutory exceptions. It does not itself impose an independent tax rate.

Section 115JEE(1): deductions that trigger AMT provisions

Under subsection (1), Chapter XII-BA applies to a person who claims any of the following deductions, subject to other provisions and applicable exceptions:

• Chapter VI-A, heading C: a deduction under a section within “Deductions in respect of certain incomes”, other than Section 80P.
• Section 10AA: qualifying deductions associated with eligible Special Economic Zone units, where the statutory conditions are met.
• Section 35AD: deduction for specified capital expenditure of eligible businesses, subject to the conditions of that section.

Simply being a non-company taxpayer does not automatically trigger AMT. The applicable tax year, claimed deductions, adjusted total income and any statutory exclusions must be examined.

Section 115JEE(2): Rs. 20 lakh threshold

Subsection (2) provides relief where adjusted total income does not exceed Rs. 20 lakh for specified categories: an individual, Hindu undivided family (HUF), association of persons (AOP), body of individuals (BOI), or artificial juridical person described in Section 2(31)(vii).

This is an adjusted-total-income threshold, not a gross-receipts threshold. The threshold does not generally extend to an LLP or partnership firm merely because its adjusted total income is Rs. 20 lakh or less. A person not claiming a specified deduction may be outside this chapter independently of the threshold.

How Section 115JEE works with Section 115JC

Where Chapter XII-BA applies, adjusted total income is generally computed by adding back to ordinary total income the specified deductions under Chapter VI-A heading C (excluding Section 80P), Section 10AA and the prescribed net adjustment for Section 35AD. Section 115JC compares regular income-tax with AMT computed on adjusted total income. The precise tax rate, surcharge and cess depend on the applicable assessment year and statutory category.

Any AMT credit and carry-forward are governed by Section 115JD, not Section 115JEE.

Income-tax Act, 2025: tax-year transition

The Income-tax Act, 2025 commenced on 1 April 2026. For periods governed by the new Act, use its operative provisions and transitional rules rather than applying the 1961 Act's section numbering without checking the relevant tax year. The AMT provisions are consolidated in the new Act's framework for minimum tax; the precise scope, rates and credit rules should be checked against the official text and applicable amendments. Section 115JEE remains important for interpreting assessments and disputes under the 1961 Act.

For current statutory material consult the Income Tax Department, Income Tax India legislative resources and India Code. Where a tax year spans a change in law, consult the relevant commencement, savings and transition provisions.

Practical compliance checklist

1. Identify the taxpayer's legal category and the assessment year or tax year.
2. Check whether a deduction specified in Section 115JEE(1) is actually claimed.
3. Calculate adjusted total income under the applicable minimum-tax rules.
4. For an individual, HUF, AOP, BOI or eligible artificial juridical person, test the Rs. 20 lakh exclusion under the 1961 Act.
5. Where AMT applies, compare regular tax and AMT and complete the prescribed accountant's report, where required.
6. Maintain records of any available AMT credit and its permitted carry-forward period.

Frequently asked questions

Does Section 115JEE apply to every individual?

No. The specified deductions and the statutory adjusted-total-income threshold must be considered.

Is the Rs. 20 lakh limit based on taxable income?

No. The statute refers to adjusted total income, a separately calculated amount for AMT purposes.

Is Section 80P included in the specified Chapter VI-A deductions?

No. Section 80P is expressly excluded from that category in Section 115JEE(1)(a).

Does the Rs. 20 lakh exclusion apply to an LLP?

No. LLPs are not included in the list of persons specified in Section 115JEE(2).

Does Section 115JEE itself grant AMT credit?

No. The relevant AMT credit mechanism is contained in Section 115JD.

Original Section 115JEE text and amendment notes

The following text is retained from the original webpage for historical reference. Footnote numbers are editorial annotations, not part of the operative statutory wording. Consult the official amended legislation for the relevant year.