Discretionary Trust Wins: Surcharge Calculated Using Slab Rates, Not Maximum Flat Rate for Tax Years

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....The ITAT adjudicated a dispute regarding surcharge computation for a private discretionary trust. The tribunal referenced a Special Bench precedent establishing that surcharge calculation must follow slab-wise rates in the Finance Act's First Schedule, rather than applying a flat maximum rate. Consequently, the tribunal ruled in favor of the assessee, allowing surcharge at 10% for AY 2021-22 and 25% for AY 2022-23, thereby rejecting the proposed 37% surcharge. The decision affirms a nuanced interpretation of tax computation methodology for discretionary trusts, ensuring proportional and legally compliant surcharge assessment.....