Surcharge on income tax

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Surcharge on Income Tax

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TOPICS COVERED

• Surcharge on Income Tax
• Income Tax Surcharge on Individuals
• Income Tax Surcharge on Firms
• Surcharge on Income Tax for AY 2016-17 2017-18
• calculation of surcharge on income tax 

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Surcharge on Income Tax

• The Surcharge is levied only if Income is more
  than Rs. 50 Lakhs in case of Individuals and Rs.
  1 Crores in a case of Companies.
• The Surcharge rate has been increased in the
  Union Budget-2017 which is applicable for FY
  2017-18.
• Different Surcharge rates shall apply for
  particular categories of taxpayers.

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Income Tax Surcharge on Individuals

• The surcharge on Income Tax is highest for
  individuals and HUF  is 15 for the Financial
  Year 2017-18.

Income Slab Surcharge on Income
Less than Rs. 50 Lakhs NIL
Rs. 50 lakhs to Rs. 1 Crore 10
Above 1 Crore 15
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Income Tax Surcharge on Firms

• Surcharge Tax for Firms, Co-operative Societies,
  and Local Authorities on FY 2017-18.

Income Slab Surcharge on Income Tax
Less than Rs. 1 Crores Nil
More than Rs. 1 Crores 12
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Surcharge for Domestic company

• surcharge on income tax for FY 2017-18 for
  Domestic Company.

Income Slab Surcharge on Income Tax
Less than Rs. 1 Crores Nil
Rs. 1 Crore to Rs. 10 Crores 7
Above Rs. 10 Crores 12
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Surcharge for Foreign Company

• complete details regarding surcharge for AY
  2016-17 and FY 2017-18

Level of Income Surcharge on Income Tax
Less than Rs. 1 Crores Nil
Rs. 1 Crores to Rs. 10 Crores 2
More than Rs. 10 Crores 5
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Surcharge on Income Tax for AY 2016-17 2017-18

• For Individual, HUF, Firms, Co-operative
  societies
• The Surcharge is 12 of income tax if Net income
  exceeds Rs 1 Crore. 
• For Local authorities
• Surcharge on Income Tax for AY 2016-17 is 12
• Surcharge on Income Tax for AY 2017-18 is 15
• For Companies
• Surcharge for companies for Assessment year
  2015-16 and Assessment year 2016-17 is applicable
  at the rates

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For Companies
Companies If net income does not exceed Rs. 1,00,00,000 If Net income is in the range of Rs 1 Crore to Rs. 10 Crore If Net income is in the range of Rs 1 Crore to Rs. 10 Crore If Net income is more than Rs. 10 Crore If Net income is more than Rs. 10 Crore
Companies AY 2015-16 and 2016-17 AY 2015-16 AY 2016-17 AY 2015-16 AY 2016-17
Domestic Company Nil 5 7 10 12
Foreign Company Nil 2 2 5 5
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Calculation of surcharge on income tax

• If the Net Income is less than one crore

Net Income Value 97,00,000
Total Tax payable as per Income Tax Slab Rates 2740000
Applicability of Surcharge No
Surcharge _at_ 12
Total Tax payable (including Surcharge) 2740000
Education Cess _at_ 2 SHEC _at_ 1 82200
Total Tax Payable (after Education Cess SHEC) 2822200
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• If the Net income exceeds one crore

Net Income Value Rs. 1,30,00,000
Total Tax payable as per Income Tax Slab Rates 3730000
Applicability of Surcharge Yes
Surcharge _at_ 12 447600
Total Tax payable (including Surcharge) 4177600
Education Cess _at_ 2 SHEC _at_ 1 125328
Total Tax Payable (after Education Cess SHEC) 4302928
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