Surcharge – Definition and Computation.

Surcharge is an additional tax levied on the amount of income-tax. In case of the following :

  • Individuals/HUF/AOP/BOI/artificial juridical person –
    • Surcharge is levied @ 10% on the amount of income-tax where the total income of the taxpayer exceeds Rs. 50 lakh but doesn’t exceed Rs. 1 crore.
    • Surcharge is levied @ 15% of income-tax where the total income of the taxpayer exceeds Rs. 1 crore.
  • In case of Firm, co-operative society and local authority surcharge is levied at 12% if total income 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.
    • Surcharge is levied @ 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.
    • Surhcarge is levied @ 5% on the amount of income-tax if total income exceeds Rs. 10 crore.

*Total income means income on which tax liability is determined after claiming deductions.


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