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Surcharge calculation on income over 1 crore

Pawan Singhal (Others) (35 Points)

14 January 2014

Hi,

I am bit confuse how exactly the surcharge is calculated when the taxable income crosses 1 crore. Surcharge is 70k if taxable income is over by 1 lac (over 1 crore), it is 140k on 2 lacs, 210k on 3 lac, 280k on 4 lac. Till this point I am clear. But it is 298k on 5 lacs which is I am unable to understand, should'd this is 350?

Can you please let me know exactly how the surcharge is calculated and what it the formula for this.

Thanks

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13 Replies

Nikhil Kaushik (Fellow CA) (85440 Points)
Replied 14 January 2014

I think you got your computation wrong. you are right upto 2 lakhs...but thereafter you got it wrong.

See, the concept here in working is marginal relief.

Please refer to attached file to understand the same.

Attached File : 206964 1271128 marginal relief of surcharge.xlsx downloaded: 492 times

Pawan Singhal (Others) (35 Points)
Replied 15 January 2014

Originally posted by : Nikhil Kaushik

I think you got your computation wrong. you are right upto 2 lakhs...but thereafter you got it wrong.

See, the concept here in working is marginal relief.

Please refer to attached file to understand the same.

Thanks dear,

But I tried couple of online calculators including that of govt of India site as well. And all shows the same surcharge figures as I have stated earlier. Please see here - https://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx (see attached file).

Attached File : 1216274 1271259 206964 1271128 marginal relief of surcharge.xlsx downloaded: 176 times

Pawan Singhal (Others) (35 Points)
Replied 15 January 2014

Thanks dear, But I tried couple of online calculators including that of govt of India site as well. And all shows the same surcharge figures as I have stated earlier. Please see here - https://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx (see attached file).

Attached File : 1216274 1271261 206964 1271128 marginal relief of surcharge.xlsx downloaded: 164 times

Nikhil Kaushik (Fellow CA) (85440 Points)
Replied 15 January 2014

Dear Friend,

I checked just now...the link you gave gives the same result as my file is giving.

please check again.

Attached File : 206964 1271269 surcharge 1 05 cr.pdf downloaded: 168 times

1 Like

Nikhil Kaushik (Fellow CA) (85440 Points)
Replied 15 January 2014

For 1.04 Cr

Attached File : 206964 1271270 surcharge 1 04 cr.pdf downloaded: 141 times

Pawan Singhal (Others) (35 Points)
Replied 15 January 2014

Dear Nikhil, It seems the different calculators are giving different figures. Please see attached for 104 Lacs and 105 Lacs. So confused now which is correct?

Pawan Singhal (Others) (35 Points)
Replied 15 January 2014

Dear Nikhil, the attachment

Attached File : 1216274 1271303 surcharge on 104l and 105l.pdf downloaded: 155 times

Nikhil Kaushik (Fellow CA) (85440 Points)
Replied 15 January 2014

There is no confusion. I did the computation for a company. You are doing for an individual...thats the difference..

Pawan Singhal (Others) (35 Points)
Replied 15 January 2014

Ohh God, I am looking for individuals calculation Nikhil. Do you have for individuals pls?

Nikhil Kaushik (Fellow CA) (85440 Points)
Replied 15 January 2014

the computation for individuals is correct as these online calculators are giving. The earlier question of why it is 2.98 lakhs at 1.05 cr. that is because of the effect of marginal relief.

Attached File : 206964 1271337 marginal relief of surcharge individual.xlsx downloaded: 185 times

Pawan Singhal (Others) (35 Points)
Replied 15 January 2014

Nikhil, what is the formula to calculate that marginal refief please? If you give me an example in the s/sheet as you send earlier for companies would be helpful and appreciated.