Tax treatment of member's share in association income: exclusion where association taxed at maximum marginal rate; otherwise included.

The provision prescribes that a member's share in the income of an association of persons or body of individuals, computed under the applicable computation rules, is excluded from the member's total income where the association is taxed at the maximum marginal rate or higher; in other cases the computed share is included in the member's total income. If no tax is chargeable on the association's total income, the member's share is chargeable to tax as part of his total income.

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