For tax year 2026-27, an individual who has opted out of the default tax regime claims a profit-linked deduction. His regular income-tax is ₹6,10,000 and his adjusted total income is ₹52 lakh. He is…

Section 206(2) of the Income-tax Act, 2025 charges a non-corporate person alternate minimum tax at 18.5% of adjusted total income when regular income-tax is lower, so he pays 18.5% of ₹52 lakh, or ₹9,62,000. The 15% rate applies only to co-operative societies and 14% is the company MAT rate under section 206(1); the regular tax of ₹6,10,000 is displaced because it is lower than the alternate minimum tax.