Maximum marginal rate under Section 2(29C) means:
AAverage rate of tax
B30% flat rate
CHighest slab rate of tax including surcharge for individuals/AOP/BOI
DRate notified by CBDT yearly (per relevant Section) (per relevant Section)
Answer & Solution
Correct answer: C. Highest slab rate of tax including surcharge for individuals/AOP/BOI
1. Section 2(29C) defines MMR as rate (including surcharge) applicable to the highest slab of income for individual/AOP/BOI.
2. It includes basic rate plus surcharge plus health and education cess.
3. Used for AOP/BOI in certain cases and discretionary trusts.
_Source: ICAI BoS CA Final Paper 7, Ch 1 "Basic Concepts"_
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