No question of surcharge over surcharge. Check how the surcharge is calculated as:
The surcharge is levied on the total income tax of the taxpayer. It is not levied on the income of the taxpayer. Therefore, to calculate the surcharge, the income tax should be calculated first. Once you get the income tax, calculate the surcharge as well.
Secondly, Surcharge is levied as
- 10% of the Income Tax, where taxable income is more than Rs. 50 lacs and upto Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 50 lacs by more than the amount of increase in taxable income.
- 15% of the Income Tax, where taxable income is more than Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income. (it is known as Marginal Relief).
Here for 1 Cr income tax liability (before surcharge) would be Rs. 28,12,500/-
+ (10% SC) = Rs. 30,93,750/-
+ (15% SC) = Rs. 32,34,375.
So, any additional income over 1 Cr. increases margin from 10% to 15% by amount of Rs. 140625/-; hence relief is provided for increase of tax upto the increase in the taxable income. ( in the particular case, it will be restricted to Rs. 31,93,750/- plus cess)