CAF-2 · Chapter 12 · Question 11 of 15
A professional firm of Chartered Accountants operates as an AOP because they are prohibited from incorporating as a company by their regulatory body. For the tax year 2026, their taxable income exceeds Rs. 5,600,000. What is the maximum marginal tax rate applicable to this professional firm?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) 40%
Explanation
In the case of an AOP that is a professional firm prohibited from incorporation by any law or regulatory body, the maximum rate applicable on income exceeding Rs. 5.6 million shall be 40% instead of the standard 45%.
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