Introduction
Minimum alternative tax is a kind of tax which is paid by the tax payer in addition to the regular tax. It was introduced by the government because the people with high income was paying less amount as compared with the income they were earning and government wants to introduce the method through which one can pay according to the income so that the people could not be affected though tax improvement and the high income peoples could not go without paying the proper tax according to the actual amount received by them. There are different stages through which it has been processed for getting the proper minimum alternative tax implementation and finally one was able to get the correct implementation on the people.
Step 1
There are different deductions through which one is able to pay the less tax for the year, the government has imposed the minimum alternative tax it helps the government to impose tax according to the income of the person so that one is paying according to the income and no one could suffer and no one could escape from the tax payment accordingly.
Step 2
Minimum tax alternative is impose on the people who are receiving the high income on yearly basis and paying less tax on the amount received by them. It is impose along with the regular taxes which the person has to pay to the government.
Different conditions are imposed in the beginning and one was able to escape from the minimum tax alternatives in past especially the middle class family earner but now along with the high income receiving people the middle classes are paying the minimum alternative tax.
Step 3
There is a form available for the minimum alternative tax for the people through which one was able to get the information whether one is liable to make the payment for the minimum alternative tax and it is to be filled by every tax payer in the country.
Minimum alternative tax is paid with the comparison of the regular at that one is paying to the company, that’s one can also calculate the minimum alternative tax on their own as well by adding different deductions and exemptions in the regular tax by the person.
The minimum alternative tax could be reduced by the person through making some adjustments and one can present the form to the government according to that one like the company profit could be reduced by applying different accounting principles.
Features
In company, if they introduced different accounting principle for the stock calculations like the LIFO, FIFO for the presenting the profit, it will have different impact on the profit of the company and one can represents the less tax through which one will pay less minimum alternative tax.
Different taxes and interest paid by the person have to be deducted from the profit because one has to represent the real profit and earning of the person and then has to pay the tax accordingly. Therefore, one can makes the payment less by showing all the taxes and interest aped by the person on any transactions.
Comments
Different facilities are provided by the companies and one should receives the facility instead of availing the reimbursement facility because one will get the amount according to the requirement instead of paying tax according to the minimum alternatives tax.
If there is incorrect implementation of the minimum alternative tax by the government then one should claim it within due date so that one could avoid making the payment and could process application for the adjustment of the tax.
