Marginal Relief
There is a marginal relief available from the surcharge in all cases. This means that the total amount of income tax and surcharge payable cannot exceed a certain limit. The limit is calculated as follows:
- For individuals and HUFs: 30% of the total income
- For domestic companies: 22% of the total income
- For foreign companies: 20% of the total income
- For co-operative societies: 22% of the total income
Additional Points to Note:
- The surcharge is calculated on the total taxable income after applying deductions and exemptions.
- The surcharge is not deductible from income for tax purposes.
- The surcharge rates and marginal relief provisions are subject to change by the government from time to time.
Additional resources:
Types of ITR | Which ITR Should I File?
What is Income Tax? | Tax Slab | Deductions Allowed
Income Tax Surcharge in India
The Indian income tax system imposes a surcharge on income tax in addition to the basic tax rates. This surcharge is levied at different rates depending on the taxpayer’s total income.