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Dt ca final please help
Students of CA final referring DT practice manual please help me out with this doubt. In assessment of various entities chapter question no 52(T and Q problem) why is surcharge added while computing the taxable income of AOP even thought the total income didn't exceed Rs 1 crore?
Replies (17)
practice manual was not amended so dont be confuse.
But ma'am,the practice manual is relevant for November 2014 examinations(as amended by the finance act 2013).
@ shree, ya it is amended pm only. I wl tel once i check that..give me time till 3 pm.
Okay take your time
Since one of the member of AOP has individual income > Basic exemption...maximum marginal rate is applied to AOP...
Refer note no.1 of respective ques.
Okay.I had read it but thought maximum marginal rate is 30% + 3% if income is lessthan 1 crore and 30%+ surcharge 10%+3% only if income exceeds 1 crore. That's why I got this doubt
So maximum marginal rate includes surcharge even if the income is below 1 crore is it?
Surcharge wil nt be applicable at all. In the given case, chargeable at MMR does nt mean inclusive of surcharge. For surcharge, as u knw that limit should cross. Chargeable at MMR does nt mean it has over ride the provisions of limit mentioned for applicability of surcharge.
@ shree..ur doubt is right so dont apply surcharge. Like this i found many mistakes in computions, so apply the correct provisions, dont go as per calculation. All the best.
So this particular problem in practice manual has a mistake right?
Okay. Thanks a lot for the replies
ofcourse, mistake in respect of surcharge. Tel me, u wil believe provisions of IT act or just PM?. U have to followe correct provisions rite. Then dont interpret ur understanding to match with practice manual. Once u knw the provision correctly, then make correction in PM only.
Yes I agree with you. IT provisions should be followed in case of any inconsistencies in any other books
Yes there is a mistake same question comes in exam mention current provisions by way of notes
Maximum marginal rate means the rate of Income tax (including surcharge & edu cess) applicable to the highest slab of income in case of an individual I.e. 30% + 10% + 3% = 33.99%.
This is clearly written in institute module..don't declare PM wrong.
For this particular case of taxation of AOP/BOI ..MMR- 33.99%
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