Discretionary trust liable to pay tax at maximum marginal rate, ...

Trust taxed at highest individual income tax rate to curb tax avoidance.

October 10, 2024

Case Laws Income Tax AT

Discretionary trust liable to pay tax at maximum marginal rate, including highest slab rate of income tax and surcharge applicable to individuals. Section 2(29C) mandates computing maximum marginal rate by considering highest tax rate and surcharge rate for individuals. Surcharge cannot be based on trust's slab rate; it defeats the purpose of discouraging discretionary trusts. Central Processing Centre has power u/s 143(1) to compute correct tax and surcharge amount payable by assessee. Assessee's appeal dismissed, upholding CIT(A)'s order that maximum marginal rate is correctly computed using highest individual tax and surcharge rates.

View Source

← Previous Next →

Discretionary trust liable to pay tax at maximum marginal rate, ...

Trust taxed at highest individual income tax rate to curb tax avoidance.

October 10, 2024

Case Laws Income Tax AT

You may also like:

The appellant trust claimed to be formed for public charitable activities and registered under the Rajasthan Public Trust Act 1959, regularly filing its income tax...

Income Tax: Section 47(iii) of the Income Tax Act, which exempts transfers of capital assets under gift, will or irrevocable trust from capital gains tax, is proposed to...

Assessment of trust/AOP - trust to be assessed in the status of AOP - religious trusts / deity - Levying tax at the maximum marginal rate instead of rates applicable to...

ITAT set aside CIT(A)'s orders concerning taxation of rental income earned by an AOP under s.167B. While co-ownership agreement specified determinate shares,...

ITAT determined that a registered charitable trust's income should be taxed at normal rates rather than maximum marginal rates, despite undefined trustee shares. While...

Insertion of new Chapter XII-EB - Tax on accreted income-Interest payable for non-payment of tax by trust or institution - When trust or institution is deemed to be...

Higher rate of tax @60% u/s 115BBE - though the alleged surrendered income is a business income but since assessee being individual having no limitation of earning...

The Income Tax Appellate Tribunal (ITAT) examined the taxability of income from a discretionary trust u/s 164(1) read with clause (ii) of Explanation 1 to Section 164 of...

This summary concerns an appeal before the Income Tax Appellate Tribunal regarding violations of Sections 11 to 13 of the Income Tax Act by a trust. The key points are:...

Income Tax: The proposed amendment to section 198 aims to widen the tax base and address tax avoidance by deeming all sums deducted as tax in India and abroad, for which...

The assessee company is eligible to claim Foreign Tax Credit (FTC) against its Minimum Alternate Tax (MAT) liability u/s 115JB of the Income Tax Act for taxes paid in...

Assessment of trust as Association of Persons (AOP) - family trust - rate of tax - maximum marginal rate or slab rates - Assessee family trust has only income from other...

The Income Tax Appellate Tribunal (ITAT) held that the assessee is entitled to the concessional tax rate of 10% on royalty income u/s 115BBF, as the assessee had...

Reforms in Tax Rates - tax rates of the major countries of Asia

Trust's income tax liability determined based on last will provisions, not maximum marginal rate - assessee's appeal allowed. AO and CIT(A) erred in applying Section...

Quick Updates: