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Marginal relief calculation

shradha (-) (97 Points)

22 May 2016

What will be marginal relief on Income of 10,01,00,000 in case of domestic company. URGENT !!!

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7 Replies

CA MANISH SAXENA (Partner) (561 Points)
Replied 22 May 2016

Hi Shradha!

In my opionion NO Marginal relief would be available in this case.

I think u wants to ask about this:

In case of a domestic firm having taxable income of Rs. 1,00,01,000/-

1.	Income Tax	Rs. 30,00,300
2.	Surcharge @ 5% of Income Tax	Rs. 1,50,015
3.	Income Tax on income of Rs. 1 crore	Rs. 30,00,000
4.	Maximum Surcharge payable (Income over Rs. 1 crore less income tax on income over Rs. 1 crore)	Rs. 700/- (1000 - 300)
5.	Income Tax + Surcharge payable	Rs. 30,01,000
6.	Marginal Relief in Surcharge	Rs. 1,49,315/- (1,50,030 - 700)

2 Like

shradha (-) (97 Points)
Replied 22 May 2016

Can you kindly specify the reason so as to why marginal relief won't be applicable on th figure asked above. Please.

Dineshchandan (articled assistant) (84 Points)
Replied 22 May 2016

marginal relief is applicable.

1. 30% tax = 30,30,000
7% surcharge on tax = 2,12,100

2. tax in 1cr = 30,00,000
Add: additional income in excess of 1cr = 1,00,000

3. Net tax payable = least of 1&2

hence relief = 1,42,100

shradha (-) (97 Points)
Replied 23 May 2016

Sir, this calculation is for 1crore 1 thousand, i asked for 10 crore 1 Lakh.

Hello CA (self employed) (377 Points)
Replied 23 May 2016

Marginal relief=Rs.14,33,600/- and tax will be Rs.3,22,00,000/- +cess 3%

Dineshchandan (articled assistant) (84 Points)
Replied 23 May 2016

@ Shradha

Yeah my bad, I calculated for 1Cr 1lakh (not 1 thousand). Here is calculation for 10Cr 1 lakh

Income	10,01,00,000
Tax @ 30%	3,00,30,000
Surcharge @ 12%	36,03,600
Total (1)	3,36,33,600

Tax on 10Cr @ 30%	3,00,00,000
Add: Income in excess of 10Cr	1,00,000
Total (2)	3,01,00,000

Least of 1 & 2	3,01,00,000

So, relief from Rs.3,36,33,600	35,33,600
Hence, Net Tax Payable	3,01,00,000

Note:

1. Net Tax payable will always be Least of 1 & 2. The difference if any will be reduced from (1) as relief.

2. Cess is in addition to above tax liability.

Lalit Saklani (5 Points)
Replied 06 June 2016

how would i calculate marginal relief in case of arrears of 1 and half years? first 9 months in the A.Y 2014-15 next 9 months in the A.Y 2015-16. both year have different slab rates. Arrear received in may,2015 . (individual case). please suggest me asap.

Arrear of year starting from 15june,2013 to 31 dec,2014...and received on may,2015..

plx suggest me..