1. In case total income of PFAOP/AOP is not taxable at MMR or any other rate higher than MMR—the share of income of a member of PFAOP/AOP shall be added in his total income and shall be eligible for rebate of tax at average rate on such share.
2. In case total income of PFAOP/AOP is taxable at MMR or a higher rate —the share of income of a member from such PFAOP/AOP shall not be included in the total income of such member.
3. In case total income of PFAOP/AOP (which does not have any member whose individual income exceeds Rs. 50,000) is not taxable at all—the share of income of a member from such PFAOP/AOP shall be fully added in the individual income of such member and is fully taxable. No rebate of tax in this case.
4. The term average rate of income-tax means the rate computed in following manner [Section 2(10)] :
Average rate = Total Income Tax x 100/Total Income