Hello - I have a doubt regarding computation of surcharge on Income-Tax. As we all know, there is a cap of 15% on the surcharge on income from capital gains and dividends. Assume Mr. X has a Total Income of Rs.2,15,25,000 for the Assessment Year 2022-23, with the following break-up:
- Income from Salaries: Rs.2,09,00,000
- Income from Long-term Capital Gains u/s 112A: Rs.25,000
- Income from Dividends from Indian companies: Rs, 4,00,000
- Income from Dividends subject to DTAA: Rs.2,00,000
- Deduction under Chapter VI A: Rs. 2,00,000
I have the following queries:
a) There is a cap on surcharge of 15% for Income under Capital Gains and Dividends - Since LTCG is exempt upto Rs.1,00,000. Should surcharge be calculated on Rs.25,000/-?
b) Does the cap of 15% surcharge apply to Income from Dividends subject to DTAA also?
c) How to compute Income Tax on Dividend Income of Rs.6,00,000? Will it fall under the 20% slab or the 30% slab?
Appreciate your time to go through this question and answer it. I could not find answer from many sources and I am trying to find how IT department applies programming logic to calculate the 15% surcharge.
CAclubindia
