https://www.taxtmi.com/caselaws?id=784929 Taxation of a private trust constituted for employee welfare was addressed regarding whether the proviso exception to the representative assessee rule applies instead of the maximum marginal rate rule. The tribunal applied the CBDT clarification and concluded that trusts created for employees, where trustees receive income as representative assessee and income is applied for employees benefit, fall within the proviso exception; consequently the trusts income is taxable at normal rates applicable to an association of persons rather than at maximum marginal rates, and no surcharge is leviable where taxable income is below the applicable threshold. The assessing officer was directed to recompute tax after verification. en-us Mon, 05 Jan 2026 00:00:00 +0530 Wed, 14 Jan 2026 08:56:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784929 Taxation of a private trust constituted for employee welfare was addressed regarding whether the proviso exception to the representative assessee rule applies instead of the maximum marginal rate rule. The tribunal applied the CBDT clarification and concluded that trusts created for employees, where trustees receive income as representative assessee and income is applied for employees benefit, fall within the proviso exception; consequently the trusts income is taxable at normal rates applicable to an association of persons rather than at maximum marginal rates, and no surcharge is leviable where taxable income is below the applicable threshold. The assessing officer was directed to recompute tax after verification. Case-Laws Income Tax Mon, 05 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784929