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
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.
| Originally posted by : Nikhil Kaushik | ||
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I think you got your computation wrong. you are right upto 2 lakhs...but thereafter you got it wrong. 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). |
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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).
Dear Friend,
I checked just now...the link you gave gives the same result as my file is giving.
please check again.
For 1.04 Cr
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?
There is no confusion. I did the computation for a company. You are doing for an individual...thats the difference..
Ohh God, I am looking for individuals calculation Nikhil. Do you have for individuals pls?
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.
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.
the formula is there in the sheet provided in my last message...
OK, I thought the formula provided in the last sheet was for companies and not for individuals..
CAclubindia
