Hey Pal,
A surcharge is an additional tax. It is assessed on the tax due, not the income earned. For instance, if your income is Rs 100 and your tax is Rs 30, your income tax surcharge calculation would be 10% of Rs 30, or Rs 3. In India, if a person's income exceeds Rs. 50 lakhs, a surcharge of 10% is applied, and if it exceeds Rs. 1 crore, a surcharge of 15% is applied. Companies must pay it if their annual revenue exceeds Rs. 1 Crore.
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Please examine the examples of an individual assessee below to see how is income tax surcharge calculated in cases of individuals:- Taxable Income is Rs. 49 Lakhs:
Assume a person has taxable income of Rs. 49 Lakhs. In this scenario, as the total taxable income is below the minimum threshold limit of Rs. 50 Lakhs, surcharge is not applicable, and the tax due will be calculated according to the applicable slab rates.
Please find the sample of tax payable including surcharge in case of a domestic company assessee below to show the applicability and computation of surcharge in case of a domestic company:- Taxable income of Rs. 95 lakhs:
Suppose a domestic company has taxable income of Rs. 95 lakhs, which is subject to a 30% tax rate. In this scenario, since the total taxable income is below the minimal level of Rs. 1 crore, the surcharge is not applicable, and the company will be subject to the applicable tax rates.
Please locate the example below to see how the surcharge is applied and calculated in the event of a foreign company:- 95 Lakhs Rupees in Taxable Income:
Let's say a foreign firm has 95 Lakhs Rupees in taxable income. A 40% tax rate applies to this. Since the total taxable income in this situation is below the Rs. 100 lakh minimum threshold limit, the surcharge is not applied. The amount of tax due is 40% of Rs 95 lakh, or Rs 38,000,000.
I would like to conclude my discussion here about the income tax surcharge calculation. I hope this helps:)
Read More:
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How to Calculate Surcharge on Income Tax?
Samantha
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3 Year
2022-09-14T19:14:00+00:00 2022-09-14T19:14:01+00:00Comment
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