Surcharge on Trusts Not Automatic; Applies Only if Income Exceeds Prescribed Limit

Ujjwal Business Trust Vs Income Tax CPC Exem Ward 2(4) (ITAT Mumbai) In the case of Ujjwal Business Trust Vs. Income Tax CPC Exem Ward 2(4), the assessee, an irrevocable private discretionary trust, challenged the levy of surcharge and additional interest imposed during income tax processing for the Assessment Year 2022-23. The dispute arose when the Centralized Processing Center (CPC) levied a surcharge amounting to ₹3,959 and consequential education cess and interest under Section 234B, despite the total declared income being only ₹36,930—far below the ₹50 lakh threshold for surcharg...