Maximum marginal rate of tax on aop
This query is : Resolved
11 December 2011
when & how maximum marginal rate of tax is imposed on AOP for assessment of income tax
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.
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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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
regarding third point how individual income be charged at 41.2% because higher rate as per slab is 30 % + cess
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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