A complex trust pays tax on the income that it retains and adds to corpus.

Name: A complex trust pays tax on the income that it retains and adds to corpus.
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Question

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A complex trust is taxed on its income, and any income that is not distributed to beneficiaries is added to the trust's corpus and also taxed. Therefore, it pays tax on both the income it retains and the income it distributes to beneficiaries.

A Complex Trust Pays Tax on the Income That It