SURCHARGE
(1) In the case of domestic companies, the rate of
surcharge is 5%, where the total income exceeds ` 1 crore.
(2) In the case of foreign companies, the rate of
surcharge is 2%, where the total income exceeds ` 1 crore.
(3) No surcharge is leviable for assessees, other than
companies.
Marginal Relief: The concept of marginal relief is
applicable only in the case of companies . Marginal relief is available in case
of companies having a total income exceeding ` 1 crore i.e. the additional
amount of income-tax payable (together with surcharge) on the excess of income
over ` 1 crore should not be more than the amount of income exceeding ` 1
crore.
“Education cess” and “Secondary
and Higher education cess” on income-tax:
Theamount of
income-tax as increased by the union surcharge, if applicable, should be
further increased by an additional surcharge called the “Education cess on
income-tax”, calculated at the rate of 2% of such income-tax and surcharge, if
applicable. Education cess is leviable in the case of all assessees i.e.
individuals, HUF, AOP / BOI, firms, local authorities, cooperative societies
and companies. Further, “Secondary and higher education cess on income-tax” @1%
of income-tax plus surcharge, if applicable, is leviable to fulfill the commitment
of the Government to provide and finance secondary and higher education.
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