During the 1990s companies having large profits and declaring substantial dividends to shareholders have paid no tax by arranging zero profitable income. The corresponding tax similar to mat but imposed on individuals or non corporate entities who claim certain deductions under the it act deduction under section 80h to 80rrb except 80p deduction under section 35ad and deduction under section 10aa is known as alternate minimum tax amt. The amt recalculates income tax after adding certain tax preference items back into adjusted gross.
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