Wondering what is surcharge in income tax? Here is the answer.
Surcharge is an additional tax or charge levied on the income tax payable by individuals, Hindu Undivided Families (HUFs), companies, and other entities in India.
It is applied to the basic income tax liability and is calculated as a percentage of the income tax payable.
The surcharge is typically imposed on taxpayers with higher income levels. It is designed to ensure that individuals and entities with higher incomes contribute proportionally more to the tax revenue.
Now that you know what is the surcharge on income tax, you should know that the surcharge rates and the income slabs to which they apply may vary, and they are specified in the Finance Act, which is presented as part of the Union Budget each year.
The surcharge rates for individuals and HUFs were as follows:
Individuals and HUFs with total income exceeding ₹50 lakh but not exceeding ₹1 crore: 10% of income tax. Individuals and HUFs with total income exceeding ₹1 crore: 15% of income tax.For companies, the surcharge rates may vary based on the level of income.
It's important to note that surcharge is applied on the income tax amount before the application of education cess and health and education cess.
The total tax liability is calculated as follows:
Total Tax Liability = Income Tax + Surcharge + Education Cess + Health and Education Cess
I hope the surcharge meaning in income tax is clear to you now.
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Authors Of The Question
what is surcharge in income tax
Priya Yadav
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1 Answers
11 months
2024-01-23T12:33:04+00:00 2024-01-23T12:33:05+00:00Comment
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