M/s. Gaurav & Co., a partnership firm in India, is engaged in development of software and providing IT enabled services through two units, one…

Computation of total income and tax liability of M/s. Gaurav & Co., a partnership firm, as per the normal provisions of the Act for A.Y. 2026-27 Particulars ₹ (in lakhs) Business income (before deduction under section 10AA) SEZ Unit 50.00 Add: Amount debited to SEZ Re-investment Reserve 20.00 70.00 DTA Unit 40.00 Gross Total Income 110.00 Less: Deduction u/s 10AA = ₹ 70 lakhs × 150 lakhs/ 210 lakhs = 50 × 50% (being the 13th year) 25.00 Amount credited to SEZ Re-investment Reserve Account 20.00 whichever is less is deductible 20.00 Total Income 90.00 Tax on total income@30% 27.00 Add: Health and Education Cess@4% 1.08 Tax liability (as per normal provisions) 28.08 Computation of Alternate Minimum tax of M/s. Gaurav & Co., a partnership firm, as per the provisions of section 115JC for A.Y.2026-27 Particulars ₹ (in lakh) Total income as per the normal provisions 90.00 Add: Deduction under section 10AA 20.00 Adjusted total income 110.00 [email protected]% of Adjusted Total Income 20.350 Add: Surcharge @12% as the adjusted total income is > ₹ 1 crore 2.442 22.792 Add: Health and Education cess @4% 0.912 Alternate Minimum Tax as per section 115JC 23.704 Since the tax liability as per the normal provisions of the Act is more than the alternate minimum tax payable, the total income as per normal provisions shall be liable to tax and the tax payable for A.Y. 2026-27 shall be ₹ 28.08 lakhs.