Maximum Marginal Rate
Arshad Ali (25 Points)
24 March 2018
Someone plz explain the MMR as per section 164 and how it is computed?
Arshad Ali (25 Points)
24 March 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160837 Points)
Replied 24 March 2018
Under s. 164(1), if the beneficiaries are not identifiable or the individual shares of the persons on whose behalf and for whose benefit the income is receivable are indeterminate or unknown, such income, again, will be taxed at the “maximum marginal rate”.
In certain other circumstances, set out in the proviso to s.164(1), the relevant income will be assessable not at the maximum rate but at the rate applicable to it as if it were the total income of an AOP.
Refer :: income-tax-act/section164
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