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Query on surcharge calculation

Others 672 views 10 replies

If the total taxable income after deductions is RS. 50,57,500 for the F.Y. 2021-22 how do you calculate surcharge on it?

Replies (10)

Is this correct please reply

You didn't compute marginal relief
Didn't understand how to calculate I tried the same formula
Step First:
Calculate total tax on 50,57,500.i.e 13,35,150
add: 10% surcharge on total tax i.e 1,33,515
Net tax payable.....14,68,665

Madam,

The tax calculation for total income of Rs. 50,57,500/- is as follows:

Up to 2.5 lakhs

Nil

Nil

2.5 to 5 lakhs

5%

12500

5,00,001 to 10 lakhs

20%

100000

10,00,001 to 50,57,500

30%

1217250

Total tax payable

1329750

Surcharge @ 10%

132975

Total tax plus surcharge

1462725

 

But if the total income is Rs. 50,00,000/- then the tax payable would be Rs. 1312500/-.

 

So for earning an additional income of Rs. 57,500/- over and above Rs. 50,00,000/-, you have to pay additional tax of Rs. 1,50,225/-. So, the department had given marginal relief so that the additional tax paid on account of surcharge should not exceed the additional income earned the threshold limit i.e. Rs. 50,00,000/-, Rs. 1,00,00,000/-, as the case may be. In your case, since the additional tax payable (Rs. 1,50,225/-)  on account of additional income of Rs. 57,500/- is higher, the surcharge of Rs. 132975/- would be restricted to 57,500/- and the net tax payable including surcharge would be Rs. 1370000/-

Thank you but on income tax calculator the surcharge figure is different

What was the surcharge amount in income tax calculator... let me cross check it

This was the surcharge amount

Madam, even I checked with online marginal relief calculator... That also calculated 57500 as surcharge 

Madam, even I checked with online marginal relief calculator... That also calculated 57500 as surcharge 


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