A discretionary trust filed return at maximum marginal rate. CPC levied surcharge at highest rate (37%). Tribunal held that surcharge must be computed as per slab rates in Finance Act. Maximum marginal rate means tax rate applicable to highest slab (30%) plus surcharge as per relevant slab, not automatically the highest 37%.
(AY. 2023-24)
Araadhya Jain Trust v. ITO (2025) 212 ITD 1 (SB)(Mum)(Trib.)
S. 164 : Representative assessee-Discretionary trust-Maximum marginal rate-Surcharge to be computed with reference to slab rates under Finance Act. [S. 2(29C), 111A, 112A, 167B, Finance Act, 2023]
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