Maximum marginal rate of tax on aop

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mohd shah Alam

mohd shah Alam (Querist)
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11 December 2011 when & how maximum marginal rate of tax is imposed on AOP for assessment of income tax

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 December 2011 MMR is charged on the Total income of an AOP
and Education Cess and S& HS Education cess is added in the rate. MMR =30%
Tax leviable 30.9%.
.
In following cases MMR or even higher rate of tax is charged on the Total Income or Part of the Total Income of an AOP-
1. When a company is member of the AOP.
2. The income of any member is taxable.
3. In case any member's income is chargeable at higher tax rate say 41.2% , in such a case, on the portion of such member higher rate is charged and on the remaining portion MMR is charged.
.
4. When shares of members are are unknown.

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mohd shah Alam

mohd shah Alam (Querist)
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12 December 2011 Thanks for reply,

regarding third point how individual income be charged at 41.2% because higher rate as per slab is 30 % + cess

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 December 2011 In case one of the memebers is a foreign company, tax rate on it is 40%, and accordingly on its portion in total income, higher rate is charged.

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