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tax slab rate
Calculation of Surcharge taking into account marginal relief:
In this case, total income is Rs. 51,00,000 on which income tax excluding surcharge is Rs. 13,42,500. If the total income would have been Rs. 50 lakhs, income tax would have been calculated as Rs. 13,12,500. Hence, the incremental income tax (excluding surcharge) is Rs. 30,000 (Rs. 13,42,500 – Rs. 13,12,500).
Since the incremental income tax inclusive of surcharge can be maximum Rs. 1,00,000 and Rs. 30,000 is consumed in incremental income tax, maximum amount of surcharge will be limited to Rs. 70,000 (10,000 – 3,000).
Hence calculation of income tax including surcharge shall be as follows:
| Total Income | 51,00,000 |
| Tax on total income as per slab rate (excluding surcharge) | 13,42,500 |
| Add: Surcharge after taking marginal relief into consideration | 70,000 |
|
Tax payable after giving effect of marginal relief |
14,12,500 |
Add Health and Education Cess @ 4% 56.500
Total Tax liability 14.69.000
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