DT - Taxation of Various Entities

Question 1

Exempt income of Local Authorities

Answer 1

• Income from House Property
• Capital Gains
• Income from Other Sources
• Business Income → Supply of Commodities & Service within its own jurisdiction area
  → Supply of Water & Electricity within or outside its own jurisdiction area

Question 2

Tax rates on income of AOP/BOI

Answer 2

• Share of income not known → @ MMR i.e 42.744%
• Share of income known → All member have income below BEL - @ slab rate
  → Any member have income above BEL - @ MMR i.e. 42.744%

Income should be except income from AOP/BOI
Interest & Remuneration is not allowed as deduction from Income of AOP/BOI

Question 3

Share of Income from AOP/BOI in hands of member

Answer 3

• if AOP/BOI taxed @ MMR - Exempt in hands of member
  *If AOP/BOI taxed at slab rate - Taxable at slab rate (-) Rebate @ avg rate of tax