Hi,
I have a friend who has Salary Income for FY24 (AY FY25) as 96 Lakhs per annum. The income tax surcharge has been deducted from his company is at 10%.
He also has capital gains income more than 1 Cr. He is liable to pay 10-15% based on long or short term capital gains and that is fine.
He is filing his returns through his CA and his CA told him that he has to now pay additional tax because the surcharge applicable to him will be 15% instead of 10% since his total income for the FY24 is now 96 lakhs+1cr = 1.96 Cr. So he has to pay the additional 5% (over what his company has deducted as surcharge) and also has to pay the penalty because that should have been paid in the last financial year and now penalty is due!
My question to the CA community here is that is this correct?
I am still not clear on the surcharge. I am confused. If my friend is in 30% tax bracket and still capital gains is taxed at 15% for short term (and not 30%), why will capital gains get added to his salary income and get him to pay a higher surcharge? The surcharge which he has paid for his salary income is separate and the capital gains is separate, right? Can someone please help me with the correct rule and explanation for this and what my friend needs to do?
CAclubindia
