https://www.taxtmi.com/caselaws?id=768734 Private discretionary trusts taxed at the maximum marginal rate are not automatically liable to surcharge at the highest surcharge rate. The definition of "maximum marginal rate" under section 2(29C) links tax to the Finance Act's rate structure, including surcharge "if any", while sections 164 and 167B do not independently fix the surcharge mechanism. The surcharge must therefore be computed under the graduated, slab-based surcharge scheme in the relevant Finance Act, unless a clear statutory mandate requires otherwise. Reading the provision to impose the highest surcharge in every case would disapply the graded surcharge structure and lead to an unreasonable result. en-us Wed, 09 Apr 2025 00:00:00 +0530 Mon, 12 Jan 2026 13:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768734 Private discretionary trusts taxed at the maximum marginal rate are not automatically liable to surcharge at the highest surcharge rate. The definition of "maximum marginal rate" under section 2(29C) links tax to the Finance Act's rate structure, including surcharge "if any", while sections 164 and 167B do not independently fix the surcharge mechanism. The surcharge must therefore be computed under the graduated, slab-based surcharge scheme in the relevant Finance Act, unless a clear statutory mandate requires otherwise. Reading the provision to impose the highest surcharge in every case would disapply the graded surcharge structure and lead to an unreasonable result. Case-Laws Income Tax Wed, 09 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768734