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Marginal Relief for Companies

Tax queries 4130 views 8 replies

Why the range of total income for Marginal Relief is restricted to Rs.1,04,47,760 in case of domestic cos.& Rs. 1,01,69,490 in case of Foreign cos.?? In other words, margnl relief is not avlble when total taxable income exceeds d above mentioned amount. why so?? why such definite amts? and what if the total income is Rs.1,04,47,770??

These prov. r given in Manoharan's book on pg 37. can anybody clear my doubt. Thanks in Advance

Replies (8)

 this is because of difference in surcharge rates of indian and foreingn co. foreign co. has a surcharge of only 2.5% and indian co. has surcharge of 10%

i agree wid kabir..

Originally posted by : kabirsen
 this is because of difference in surcharge rates of indian and foreingn co. foreign co. has a surcharge of only 2.5% and indian co. has surcharge of 10%


 

Dear Friends, I think marginal relief is not applicable to companies, it is only to se
only for individuals.........

Dear all,

As per amedment, Surcharge is Applicable only to companies & consequently only companies are entitled to marginal relief.

But dear friends my que. was not about the difference of amounts b/w domestic & foreign cos.why such definite amts? and what if the total income is Rs.1,04,47,770 in case of domestic co.?? there might be some basis for calculation for such definite amount which i m not getting.

pls help me out...Thanks in Advance..

Marginal Relief is applicable when the total income exceeds the limit from where surcharge applies. Before crossing the limit the Tax rate is 30.90% but after that the rate is 33.99%. the difference in tax due to surcharge should not exceed the income earned. eg. till Rs 1000 no surcharge so the tax amt @ 30.90% is Rs 309/- but if the income is 1010 then surcharge is applicable on total income i.e. the tax rate is 33.99% and the Tax amount is Rs 343/-. Here the extra income is only Rs 10 but the extra tax you are paying is Rs 34/-. Because of Marginal Relief you wil pay only Rs 319/-(309 tax on 1000 without SC+10-extra income) as tax & not Rs 343/-.

After crossing the limit you mentioned for Domestic & Foreign co the tax amt is less than the amount earned, so no marginal relief.

hello friends

please let me know the total income at which the marginal relief is restricted for FY 10-11.


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