Since surcharge is no longer payable by individuals/AOP/BOI/HUF, does the concept of marginal relief hold good?
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Is marginal relief applicable for AY 2010-2011
Replies (9)
As surcharge is withdrawn by Govt
concept of Marginal Relief is no longer
No. Marginal relief is not applicable. It is applicable, only in case of surcharge is applicable on income exceeding certain monetary limit. If surchage is applicable to all or there is no surcharge, irrespective of the total income, then question of margin relief does not arise.
| Originally posted by :Akshey | ||
| " | As surcharge is withdrawn by Govt concept of Marginal Relief is no longer |
" |
ya agree......
yes concept of marginal relief is no longer as concept of surcharge has been eliminated by govt.
Dear All,
The concept of marginal relief is in force and surcharge too is applicable for Individual and other - resident as well as non-residents.
The surcharge is removed only on Tax Deduction and collection and not on actual tax liability.
For your information, the extract of first schedule paragraph A of Finance Act No. 2 of 2009 is reproduce below;
THE FIRST SCHEDULE
(See section 2)
PART I
INCOME-TAX
Paragraph A
(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies,—
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Rates of income-tax
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(1)
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where the total income does not exceed Rs. 1,50,000
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Nil;
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(2)
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where the total income exceeds Rs. 1,50,000 but does not exceed Rs. 3,00,000
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10 per cent of the amount by which the total income exceeds Rs. 1,50,000;
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(3)
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where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000
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Rs. 15,000 plus 20 per cent of the amount by which the total income exceeds Rs. 3,00,000;
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(4)
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where the total income exceeds Rs. 5,00,000
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Rs. 55,000 plus 30 per cent of the amount by which the total income exceeds Rs. 5,00,000.
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(II) In the case of every individual, being a woman resident in India, and below the age of sixty-five years at any time during the previous year,—
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Rates of income-tax
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(1)
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where the total income does not exceed Rs. 1,80,000
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Nil;
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(2)
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where the total income exceeds Rs. 1,80,000 but does not exceed Rs. 3,00,000
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10 per cent of the amount by which the total income exceeds Rs. 1,80,000;
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(3)
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where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000
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Rs. 12,000 plus 20 per cent of the amount by which the total income exceeds Rs. 3,00,000;
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(4)
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where the total income exceeds Rs. 5,00,000
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Rs. 52,000 plus 30 per cent of the amount by which the total income exceeds Rs. 5,00,000.
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(III) In the case of every individual, being a resident in India, who is of the age of sixty-five years or more at any time during the previous year,—
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Rates of income-tax
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(1)
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where the total income does not exceed Rs. 2,25,000
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Nil;
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(2)
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where the total income exceeds Rs. 2,25,000 but does not exceed Rs. 3,00,000
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10 per cent of the amount by which the total income exceeds Rs. 2,25,000;
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(3)
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where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000
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Rs. 7,500 plus 20 per cent of the amount by which the total income exceeds Rs. 3,00,000;
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(4)
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where the total income exceeds Rs. 5,00,000
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Rs. 47,500 plus 30 per cent of the amount by which the total income exceeds Rs. 5,00,000.
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Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or in section 111A or section 112, shall,—
(i) in the case of every individual or Hindu undivided family or association of persons or body of individuals having a total income exceeding ten lakh rupees, be increased by a surcharge for purposes of the Union calculated at the rate of ten per cent of such income-tax;
(ii) in the case of every person, other than those mentioned in item (i), be increased by a surcharge, for purposes of the Union, calculated at the rate of ten per cent of such income-tax:
Provided that in case of persons mentioned in item (i) above having a total income exceeding ten lakh rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of ten lakh rupees by more than the amount of income that exceeds ten lakh rupees.
The provisio to above para refers to marginal relief.
Marginal Relief and Surcharge are very much applicable for A.Y. 2010-11.
Thanks
Check this link for further clarification
https://www.dateyvs.com/incom_primer.htm
details is as under
1. Surcharge – There is no surcharge on income tax for AY 2010-11. For AY 2009-10, surcharge was 10 per cent of income-tax if net income of an individual, Hindu undivided family, association of persons, or body of individuals, exceeds Rs. 10,00,000. In the case of an artificial juridical person, surcharge is 10 per cent of income-tax (i.e., income-tax minus rebate under section 88E), even if net income is less than Rs. 10,00,000.
Rebate u/s 88E (in respect of STT) is not available for AY 2009-10.
Marginal relief – Since there is no surcharge fo AY 2010-11, there is no question of marginal relief. For AY 2010-11, in the case of the aforesaid person having a net income of exceeding Rs. 10,00,000, the net amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 10,00,000 by more than the amount of income that exceeds Rs. 10,00,000.
2. Education cess and SAH Education Cess - Education cess payable is 2 per cent of income-tax and surcharge. Secondary and higher education cess is 1 per cent of income-tax and surcharge. This is in addition to income tax.
The post of Juzer is really absurd.. he has given the details regarding A.Y. 2009-10.. for a moment i was shocked.. but then the slab and other things clarified that he was wrong.. please see to it that u r thorough wen u r posting somethin.. Coming to the topic.. the concept of surcharge is the reason which gave rise to Marginal relief.. and oly Individuals are ridden off from surcharge.. firms and companies still have surcharge.. hence the concept of marginal relief continues for them.. and the govt is going to phase out surcharge for them too in the coming years..
It is Applicable for Companies when its total income exceeds 1 Crore..
Can anyone help where should we enter the value of marginal relief in the ITR excel utility.
Plz..its urgent..
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