Explained: How does the Income-Tax Bill 2025 change AMT rules for LLPs?

The revised Income Tax Bill 2025 has reinstated the Alternate Minimum Tax (AMT) exemption for Limited Liability Partnerships (LLPs) earning solely long-term capital gains (LTCG). The initial draft’s removal of this exemption created uncertainty, potentially erasing the preferential LTCG rate. The restored clause ensures LLPs with only LTCG income benefit from the lower 12.5% tax rate.

Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *