Income Tax Rates for Trusts - Income Tax - Ready Reckoner - Income Tax

Income Tax Rates for Trusts Generally Income of a Trust is taxed in the same manner as taxed in the hands of a resident Individual. AMT is 18.50% of Book Profit / Adjusted total income. For more details on Alternate Minimum Tax (AMT) , click here Special provision of Tax in case of Certain Trusts - Section 115TD Special provision of Tax in case of Business Trusts - Section 115UA However, in certain specific cases, taxes are applicable at the following rates: Sr. No. Section Income Rate of Income Tax 1 161(1A) Private Trust - Income includes Profit and gains from business 30% (Maximum Marginal Rate) 2 161(1) Private Trust - Income does not include Profit and gains from business and shares are determinate or known Rates as applicable to each beneficiary 3 164 Private Trust - Income of Private discretionary trust where shares of beneficiaries are indeterminate 30% (Maximum Marginal Rate) 4 164A Income of a Oral Trust 30% (Maximum Marginal Rate) 5 164(2) Public Trust If income is not exempted u/s 11 Taxable as AOP 6 164(2) Public Trust If exemption is forfeited due to contravention u/s 13 30% (Maximum Marginal Rate) Note : - Surcharge, Education Cess and Secondary and Higher Education Cess or Health and Education Cess, as the case may be, are applicable in the same manner as applicable to Individual / AOP as the case may be