Overview of income tax provisions, tax regimes, slabs, and compliance forms for AOP, BOI, Trusts, and AJP for Assessment Year 2026-27.
Tax Regimes and Slabs for AY 2026-27
The Finance Act 2023 amended Section 115BAC to make the new tax regime the default for Individuals, HUFs, AOPs (not being co-operative societies), BOIs, and Artificial Juridical Persons starting from AY 2024-25. Taxpayers have the option to opt out and choose the old tax regime.
For non-business cases, the choice of tax regime can be made every year directly in the ITR filed on or before the due date under section 139(1). For business cases, taxpayers must file Form 10-IEA to opt out of the new regime.
Alternate Minimum Tax (AMT)
An AOP or BOI with an adjusted total income exceeding ₹ 20 lakh is liable to pay Alternate Minimum Tax (AMT) at 18.5% of adjusted total income (plus applicable surcharge and Health and Education cess) if their normal tax liability is less than 18.5% of adjusted total income.
Key Facts & Sources
- Alternate Minimum Tax threshold
- ₹ 20 lakh
- “An AOP / BOI who’s adjusted total income exceeds ₹ 20 lakh shall be liable to pay Alternate Minimum Tax (AMT) at 18.5% of adjusted total income (plus surcharge and Health and Education cess as applicable), where the normal tax liability is less than 18.5% of adjusted total income.”
- Alternate Minimum Tax rate
- 18.5%
- “An AOP / BOI who’s adjusted total income exceeds ₹ 20 lakh shall be liable to pay Alternate Minimum Tax (AMT) at 18.5% of adjusted total income (plus surcharge and Health and Education cess as applicable), where the normal tax liability is less than 18.5% of adjusted total income.”
- Health & Education cess rate
- 4%
- “Health & Education cess @ 4% to be paid on the amount of income tax plus Surcharge (if any) in both the regimes.”
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