01 February 2014
Surcharge is part of tax and is charged on Higher Income without any specific purpose. It is levied by the Union government, in addition to Duties, Taxes that can be levied by the Union. Article 271 of the Constitution of India empowers such a levy. Article 271 is reproduced hereunder :
271. Surcharge on certain duties and taxes for purposes of the Union.- Notwithstanding anything in articles 269 and 270, Parliament may at any time increase any of the duties or taxes referred to in those articles by a surcharge for purposes of the Union and the whole proceeds of any such surcharge shall form part of the Consolidated Fund of India.
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