https://www.taxtmi.com/caselaws?id=788506 For a private discretionary trust taxed at the maximum marginal rate, surcharge is not automatically payable at the highest rate merely because the trust falls within that tax regime. The applicable surcharge must still be tested against the surcharge thresholds in the relevant Finance Act schedule, and surcharge is attracted only when total income crosses the prescribed limit. Where the trust's income remains below that threshold, the higher surcharge rate does not apply. The commentary adopts the view that surcharge for discretionary trusts depends on the statutory surcharge mechanism for the year and cannot be fixed mechanically at the top bracket. en-us Thu, 05 Mar 2026 00:00:00 +0530 Tue, 24 Mar 2026 08:12:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788506 For a private discretionary trust taxed at the maximum marginal rate, surcharge is not automatically payable at the highest rate merely because the trust falls within that tax regime. The applicable surcharge must still be tested against the surcharge thresholds in the relevant Finance Act schedule, and surcharge is attracted only when total income crosses the prescribed limit. Where the trust's income remains below that threshold, the higher surcharge rate does not apply. The commentary adopts the view that surcharge for discretionary trusts depends on the statutory surcharge mechanism for the year and cannot be fixed mechanically at the top bracket. Case-Laws Income Tax Thu, 05 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788506