Hi Tax Gurus,
I am a salaried employee and changed my job last year (Feb 2004). After change, I got part of my Superannuation from previous organization commuted . The amount was sent to me in September 2005 after TDS.
My current employer also did TDS on salary and has issued Form 16.
In both the cases, since the income was less then Rs10 lakh, no surcharge on tax was deducted.
However, when preparing my return, both (Salary and Superannuation) combined makes it above Rs 10 lakh and so I have to pay surcharge on my tax which is a substantial amount (above Rs 30000).
Question:
1) Is the Surcharge payable ONLY on tax for amount above Rs 10 lakh ?
2) Can I show the Superannuation amount as part of my previous years income (since I resigned in previous FY)?
3) If I indeed need to pay the Surcharge, what is the amount of penalty that I need to pay (since I did not pay it as Advance tax) ?
Thanks in advance for all help
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Income Tax -- Surcharge
Replies (1)
Once the income crosses Rs. 10 lakh, surcharge is payable on the whole amount. Some relaxation has been given for the marginal cases. For that please refer to ready recknor.
If superannuation can be termed as compensation for the termination of employment, then benefit u/s 89(1) read with rule 21A(4) can be claimed.
Interest for the default in payment of advance tax is payable.
If superannuation can be termed as compensation for the termination of employment, then benefit u/s 89(1) read with rule 21A(4) can be claimed.
Interest for the default in payment of advance tax is payable.
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