Surcharge is a tax on tax. It is levied on the tax payable, and not on the income generated. Surcharge is levied on the amount of income tax at the following rates if the total income of an assessee exceeds specified limits.
From FY 2023-24, the calculation of surcharge is different in old and new regimes.
Surcharge in Old Regime
| Range of Income | Rate of Surcharge |
|---|---|
| Rs. 50 Lakhs to Rs. 1 Crore | 10% |
| Rs. 1 Crore to Rs. 2 Crores | 15% |
| Rs. 2 Crores to Rs. 5 Crores | 25% |
| Rs. 5 Crores and more | 37% |
Surcharge in New Regime
| Range of Income | Rate of Surcharge |
|---|---|
| Rs. 50 Lakhs to Rs. 1 Crore | 10% |
| Rs. 1 Crore to Rs. 2 Crores | 15% |
| Rs. 2 Crores and more | 25% |
Marginal relief
Marginal relief is available from surcharge in the following manner:
- When net income exceeds Rs. 50 lakhs but doesn’t exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.
- When net income exceeds Rs. 1 crore but doesn’t exceed Rs. 2 crores, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
Leave A Comment
You must be logged in to post a comment.