Form 29C Explained: Report Under Section 115JC for Alternate Minimum Tax (AMT) Compliance
Form 29C is a statutory report under Section 115JC of the Income-tax Act, 1961. It is used to compute the Adjusted Total Income and determine the Alternate Minimum Tax (AMT) liability of taxpayers other than companies—such as individuals, Hindu Undivided Families (HUFs), Association of Persons (AOPs), and partnership firms—who claim certain deductions and whose regular income tax liability is lower than the minimum alternate tax.
This form is especially important for taxpayers claiming deductions under sections like 10AA (SEZ), 35AD (capital expenditure on specified businesses), and Chapter VI-A under heading C (Sections 80-IA to 80RRB). It ensures that even these taxpayers pay a minimum amount of tax to the government.
What is Form 29C?
Form 29C is a report certified by a Chartered Accountant, required to be filed by taxpayers falling under the purview of Alternate Minimum Tax provisions. The form contains the computation of Adjusted Total Income and the AMT liability. It also includes details of deductions claimed by the taxpayer and adjustments made to arrive at the final tax payable under Section 115JC.
Who Should File Form 29C?
Form 29C must be filed by any person other than a company (e.g., individuals, HUFs, AOPs, BOIs, partnerships) if they:
- Claim deductions under Section 10AA, 35AD, or Chapter VI-A under heading C (e.g., 80-IA, 80-IB, 80-IC, etc.)
- Have total income adjusted for AMT purposes exceeding ₹20 lakhs
- Are liable to pay AMT as per provisions of Section 115JC
Why is Form 29C Important?
The purpose of Form 29C is to ensure that taxpayers who claim substantial deductions still contribute a minimum amount of tax. It promotes tax fairness and discourages excessive tax avoidance through deductions. The report also acts as a declaration and validation of the taxpayer’s income and deduction claims, verified by a Chartered Accountant.
Understanding Alternate Minimum Tax (AMT)
Alternate Minimum Tax is similar to MAT for companies but applies to non-corporate taxpayers. It was introduced to ensure minimum tax payment by high-income individuals and entities claiming tax benefits. Under Section 115JC, AMT is calculated at 18.5% (plus surcharge and cess) on the Adjusted Total Income.
If the AMT is higher than the regular tax payable, then AMT becomes the tax liability. Taxpayers can also carry forward AMT credit for up to 15 years.
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How to Compute Adjusted Total Income?
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Adjusted Total Income is computed as follows:
- Start with total income as per the Income-tax Act
- Add back deductions claimed under:
- Section 10AA
- Section 35AD (minus depreciation)
- Chapter VI-A under "C" (80-IA to 80RRB, excluding 80P)
If the resulting Adjusted Total Income exceeds ₹20 lakh, and AMT is higher than regular income tax, the taxpayer must pay AMT and file Form 29C.
Download Form 29C Schema
The Income Tax Department provides a downloadable schema for Form 29C. This is used for generating validated XML files for online submission.
🔗 Form Schema (14.3 KB): Download Form Schema ZIP
📅 Date of First Release: 09-Aug-2022
📅 Date of Latest Release: 25-Mar-2025
Download Schema Change Document
The schema change document contains information about updates made to the structure or validations in Form 29C schema over time. It helps ensure you’re using the latest format and comply with the technical requirements of e-filing.
🔗 Schema Change Document (134 KB): Download Schema Change PDF
📄 Version: 1.3
Steps to File Form 29C
- Prepare financial statements and compute total income.
- Calculate Adjusted Total Income by adding back eligible deductions.
- Compute AMT liability at 18.5% + surcharge/cess.
- Get Form 29C prepared and certified by a Chartered Accountant.
- Generate the form in XML format and validate it using the Income Tax utility.
- Upload the XML file via the Income Tax e-filing portal.
Deadline to File Form 29C
Form 29C should be filed before or along with the filing of the income tax return. Typically, this falls on:
- 31st July for individuals and other non-audit cases
- 31st October for taxpayers whose accounts are subject to audit
Filing after the due date may result in non-availability of AMT credit and possible penalties.
Consequences of Non-Filing
- Disallowance of AMT credit
- Interest and penalty under sections 234B, 234C, and 271F
- Delay in processing tax returns or scrutiny by tax authorities
Important Points to Note
- Form 29C is required only if Adjusted Total Income exceeds ₹20 lakh.
- Taxpayers must use the latest schema version for filing.
- Form must be digitally signed by a Chartered Accountant.
- AMT paid can be carried forward for 15 years as tax credit under Section 115JD.
Conclusion
Form 29C is a crucial tax compliance requirement for individuals and entities who benefit from significant tax deductions but still have substantial income. By ensuring they pay at least the minimum alternate tax, it promotes fair contribution to the tax system. Proper computation of Adjusted Total Income and timely filing of this form not only ensure legal compliance but also facilitate smooth assessment and future tax credit utilization.
Taxpayers and professionals must regularly check for updates in schema and filing procedures. Using the right schema, following due process, and coordinating with a qualified Chartered Accountant will help avoid penalties and ensure accurate AMT filing.
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