If the share of members are not known and if any member is foreign company then tax rate is higher than MMR .i.e 40%
My query is whether surcharge on foreign company will be added only when total income exceed 1cr.
bcoz if we replace foreign company with Indian company then rate is MMR which includes the surcharge.
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taxation of AOP and BOI
Replies (1)
As per Section 2(29C) of the Income Tax Act, 1961, the term “maximum marginal rate” means the rate of income-tax (including surcharge on income-tax, if any) applicable in relation to the highest slab of income in the case of an individual, association of persons or body of individuals as specified in the Finance Act of the relevant year.
Thus, only MMR includes Surcharge whereas Foreign company would be taxable at normal rate applicable to it, and hence, surcharge would be levied.
Thus, only MMR includes Surcharge whereas Foreign company would be taxable at normal rate applicable to it, and hence, surcharge would be levied.
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