Special Bench Rules on Surcharge for Private Discretionary Trusts

Araadhya Jain Trust Vs ITO (ITAT Mumbai) Whether surcharge is applicable at respective surcharge slab rate or at maximum surcharge rate in case of the Private Discretionary Trust? In a significant ruling that brings clarity to taxation of Private Discretionary Trusts, the Income Tax Appellate Tribunal (ITAT) Special Bench has held that surcharge on such trusts should be levied according to applicable income slabs, rather than automatically at the maximum rate. Background The case arose from an appeal by Araadhya Jain Trust, a Private Discretionary Trust, against the Income Tax Department’...