In case PFAOP/AOP (excluding a company, a co-operative society or a society registered under Societies Act 1860) where shares of its members are not known or are indeterminate and it does not have any such member whose income is taxable at a rate higher than MMR (Maximum Marginal Rate)—the total income of such PFAOP/AOP shall be taxable at MMR i.e.30.90 %.
In the above case if PFAOP/AOP has any member whose individual income is taxable at a rate higher than MMR—the total income of such PFAOP/AOP shall be taxable at such higher rate.
B. Where shares of members of PFAOP/AOP are known or are determinate:
In case total income [excluding share from PFAOP/AOPI of any member of PFAOP/ AOP does not exceed the exempted limit—the total income of such PFAOP/AOP shall be assessed to tax at same rates as are applicable to an individual.
In case total income of any member of PFAOP/AOP exceeds the exempted limit—the total income of such PFAOP/AOP shall be assessed at MMR.
In case PFAOP/AOP has any member whose total income (in case of companies only) is taxable at a rate higher than MMR, the total income of such PFAOP/AOP shall be split up in two parts—
the share of income of the member whose income is assessable at a rate higher than MMR, this part of total income of PFAOP/AOP shall be taxable at such higher rate. –
and balance total income of PFAOP/AOP shall be assessed to tax at MMR.
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.
The visitors may click here to visit the web site of Income Tax Department for resolving their doubts or for clarifications