SURCHARGE ON INCOME TAX AS PER FINANCE ACT, 2019

The amount of income-tax computed in accordance with  the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—

  • ―having  a  total  income  ―(including  the  income  under  the  provisions  of section 111A and section 112A)exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax;
  • ―having a total income income ―(including the income under the provisions of section 111A and section 112A)exceeding one crore rupees but not exceeding two       crore rupees, at the rate of fifteen per cent. of such income-tax;
  • ―having a total income ―( excluding the income under the provisions of section 111A and 112 A)exceeding two crore rupees but not exceeding five crore  rupees,  at the rate of twenty-five per cent. of such income-tax; and
  • ―having a total income ―( excluding the income under the provisions of section

111A and 112 A)exceeding five crore rupees, at the rate of thirty-seven  per

cent of such  income-tax:

  • having a total income (including income under the provisions of section 111A and 112 A) exceeding two crores rupees, but is not covered under clauses (c) and (d), shall be applicable at the rate of fifteen percent of such income tax:

Provided that in case where total income includes any income chargeable under section 111A and 112 A of the Income Tax Act, the rate of surcharge on the amount of income tax computed in respect of that part of income shall not exceed fifteen percent.

Provided that in the case of persons mentioned above having total income exceeding,—

  • fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;
  • one crore rupees but does not exceed two crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees;
  • two crore rupees but does not exceed five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of two crore rupees by more than the amount of income that exceeds two crore rupees;
  • five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of five crore rupees by more than the amount of income that exceeds five crore rupees.

 Health and Education Cess

“Health and Education Cess” shall be levied at the rate of four percent of income tax including surcharge wherever applicable, No marginal relief shall be available in respect of such cess.

Priyansh Minocha

Priyansh Minocha is C.E.O and Director at Amonest India Private Limited and Founder at Casolutionsglobal

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