Maximum Marginal Rate – Section 2(70) | Income-tax Act, 2025 vs 1961

§ 2(70) · Income-tax Act, 2025

Maximum marginal rate

ITA 2025 · 2(70) ITA 1961 · 2(29C)
Definition — Section 2(70)

Means the rate of income-tax (including surcharge) applicable in relation to the highest slab of income in the case of an individual, AOP, or BOI as specified in the Finance Act for the relevant year.

Act Comparison
Income-tax Act, 2025
2(70)
Maximum marginal rate
Income-tax Act, 1961
2(29C)
Maximum marginal rate
Key Points
  • Maps to Section 2(29C) of the 1961 Act
  • Used when trusts, AOPs, or BOIs are taxed at maximum marginal rate
  • MMR is relevant for income of private discretionary trusts
💡 Practical Note

Private discretionary trusts are taxed at the maximum marginal rate — currently 30% plus applicable surcharge and cess — making them tax-inefficient for income accumulation.

Published by Simplified Tax India — Clear, section-wise comparison of Income-tax Acts. ← Back to Section 2 Definitions Table
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