What is surcharge and how it is computed?

Discussion in 'Income Tax' started by Raju Choudhary, Sep 14, 2015.

  1. Raju Choudhary

    Raju Choudhary Active Member Staff Member

    What is surcharge and how it is computed?. Surcharge is an additional tax levied on the amount of income-tax. In case of taxpayers other than company surcharge is levied @ 12% on the amount of income-tax where the total income of the taxpayer exceeds Rs. 1 crore (*).

    In case of a domestic company surcharge is levied @ 7% on the amount of income-tax if the total income exceeds Rs. 1 crore but does not exceed Rs. 10 crore and @ 12% on the amount of income-tax if total income exceeds Rs. 10 crore (*).

    In case of a foreign company surcharge is levied @ 2% on the amount of income-tax if the total income exceeds Rs. 1 crore but does not exceed Rs. 10 crore and @ 5% on the amount of income-tax if total income exceeds Rs. 10 crore (*).

    (*) A taxpayer can claim marginal relief from the amount of surcharge, subject to certain conditions. Refer to next FAQ for concept of marginal relief.

    Illustration for better understanding


    Mr. Kapoor is a doctor, his total income for the year amounted to Rs. 84,00,000. Will he be liable to pay surcharge, if yes, then how much?
    **
    Surcharge is additional tax levied on the amount of income-tax. In case of taxpayers other than company surcharge is levied @ 12% on the amount of income-tax where the total income of the taxpayer exceeds Rs. 1 crore. In this case, total income of Mr. Kapoor is below Rs. 1 crore, hence, he will not be liable to pay surcharge.
     
  2. Charan

    Charan New Member

    thanks for giving...
     
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