Section 115JB of the 1961 Act → Section 206 of the 2025 Act
Minimum alternate tax.
Quick answer
Section 115JB of the Income-tax Act, 1961 corresponds to Section 206 of the Income-tax Act, 2025. Relationship: Split or consolidated. Correspondence verified against both Acts.
How it works
A company pays at least a minimum percentage of its book profit as tax; the same section now also holds the alternate minimum tax for other persons.
Example
An IFSC company on the default regime with nil regular tax pays MAT at 9% of book profit.
What you need to do
Fund manager: compare the default regime (MAT) with the section 200 option. An LLP: check alternate minimum tax under section 206(2).
What changed?
- Section 206 brings together minimum alternate tax for companies (from section 115JB) and the alternate minimum tax for other persons (from section 115JC).
- It uses the new Act’s term “tax year” in place of “previous year”.
- It opens with “Irrespective of anything…” in place of “Notwithstanding anything…”.
- Read the complete new provision, including its conditions, exceptions and related provisions, when applying it.
The two texts, side by side
1961 · Section 115JB115JB. (1) Notwithstanding anything contained in any other provision of this Act, where in the case of an assessee, being a company, the income-tax, payable on the total income as computed under this Act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 2012, is less than eighteen and one-half per cent of its book profit, such book profit shall be deemed to be the total income of the assessee and the tax payable by the assessee on such total income shall be the amount of income-tax at the rate of eighteen and one-half per cent: Provided that for the previous year relevant to …
2025 · Section 206206. (1)(a) Irrespective of anything contained in any other provision of this Act, where in the case of an assessee being a company, the income-tax payable on the total income as computed under this Act for a tax year is less than the minimum alternate tax payable for such tax year, then— (i) the book profit shall be deemed to be the total income of that assessee for such tax year; and (ii) the assessee shall be liable to pay income-tax equal to the minimum alternate tax. (b) For the purposes of clause (a), the expressions “minimum alternate tax” means the amount of tax computed on the book profit— (i) in case of a company being a unit …
Excerpts end with … where the provision continues. Last reviewed 24 October 2026.
Related pages
Meet the expert
CS Prashant Kumar
Company Secretary & Compliance Officer
Global Horizons Capital Advisors (IFSC) Private Limited — an IFSCA-licensed investment banker
Published in The Chartered Accountant (Jun 2025, Jan 2025, Mar 2024) and Chartered Secretary (Aug 2023)
Prashant Kumar is a seasoned Company Secretary and corporate governance strategist with more than 13 years of experience advising large corporates, promoter-led groups and global businesses on compliance, regulatory risk and board governance. In GIFT IFSC, the IFSCA regime is his day job rather than a research topic.