Skip to content

CS Professional · Advanced Direct Tax Laws and Practice · Computation of Total Income, Tax Liability and Filing of Return of Companies

Under section 352 of the Income-tax Act, 2025 (applicable from the June 2027 session), at what rate is additional income-tax on accreted income charged on a specified person?

The tax is charged at the maximum marginal rate. It is additional to the income-tax chargeable on the specified person's total income, so it does not replace normal tax, and no company rate or average rate applies to accreted income.

  1. AAt the maximum marginal rate, in addition to tax on total incomeCorrect
  2. BAt 30% of total income after the basic exemption limit
  3. CAt the rate applicable to a company under its normal regime
  4. DAt the average rate of tax of the preceding three tax years

Explanation

Section 352(1) makes a specified person liable to additional income-tax on accreted income at the maximum marginal rate, over and above tax on total income. The other options name rates that the section does not use.

Did you get it right without looking?

One question tells you little. A timed set on Computation of Total Income, Tax Liability and Filing of Return of Companies shows your real accuracy, how long you take and where you lose marks.

Practise Computation of Total Income, Tax Liability and Filing of Return of CompaniesFree diagnostic mock

More Computation of Total Income, Tax Liability and Filing of Return of Companies questions