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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 %.
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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:
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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.
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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.
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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—
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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. –
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and balance total income of PFAOP/AOP shall be assessed to tax at MMR.
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