How is a surcharge levied?
One of the important points to be noted here is that the surcharge is levied as a percentage of taxes and not of income whereas taxes are levied on income earned. Basically, we can say that surcharge is a tax on tax.
What is the rate of surcharge for an Individual, HUF, AOP, BOI & AJP?
For
- A resident Individual aged less than 60 years
- A resident Individual aged 60 years & above but less than 80 years (Resident senior citizen)
- A resident Individual aged 80 years & above (Resident super senior citizen)
- Non-resident individual
- Hindu Undivided Family (HUF)
- Association of Persons (AOP)
- Body of Individuals (BOI)
- Artificial juridical person (AJP)
the surcharge is applicable as under
|
Total income |
Surcharge Rate |
| FY 2020-21 & FY 2019-20 |
FY 2018-19 |
| Upto Rs 50 Lakhs |
NIL |
NIL |
| From Rs 50 Lakhs - Rs 1 Crore |
10% of Income Tax |
10% of Income Tax |
| Above Rs 1 Crore - Rs 2 Crore |
15% of Income Tax |
15% of Income Tax |
| Above Rs 2Crore - Rs 5Crore |
25% of Income Tax |
15% of Income Tax |
| Above Rs 5 Crore |
37% of Income Tax |
15% of Income Tax |
What is the rate of surcharge for Partnership Firm, Cooperative Society and Local Authorities?
For
- Partnership Firm
- Limited Liability Partnership
- Co-operative Society or
- Local Authorities
The surcharge is applicable at same rates for the Financial Year 2020-21 (AY 2021-22), Financial Year 2019-20 (AY 2020-21), Financial Year 2018-19 (AY 2019-20) as under
|
Total income |
Surcharge Rate |
| FY 2020-21, FY 2019-20 & FY 2018-19 |
| Upto Rs 1 Crore |
NIL |
| Above Rs 1 Crore |
12% of Income Tax |
What is the surcharge rate for Indian (Domestic) companies?
For Domestic companies, the surcharge rates in India for the Financial Year 2020-21 (AY 2021-22), Financial Year 2019-20 (AY 2020-21), Financial Year 2018-19 (AY 2019-20) shall apply as under
|
Total income |
Surcharge Rate |
| FY 2020-21, FY 2019-20 & FY 2018-19 |
| Upto Rs 1 Crore |
NIL |
| Above Rs 1 Crore - 10 Crore |
7% of Income Tax |
| Above Rs 10 Crore |
12% of Income Tax |
Note:
In case of domestic companies opting for section 115BAA or manufacturing domestic companies opting for section 115BAB, the applicable rate of the surcharge shall be 10%
As an option given in Budget 2020 if the power generating manufacturing units opt for Section 115BAB for payment of taxes at 15% then the rate of surcharge in this case would be 10%.
What is the rate of surcharge for Foreign companies?
For companies other than Domestic company, the surcharge shall apply for the Financial Year 2020-21 (AY 2021-22), Financial Year 2019-20 (AY 2020-21), Financial Year 2018-19 (AY 2019-20) at the following rates
|
Total income |
Surcharge Rate |
| FY 2020-21, FY 2019-20 & FY 2018-19 |
| Upto Rs 1 Crore |
NIL |
| Above Rs 1 Crore - 10 Crore |
2% of Income Tax |
| Above Rs 10 Crore |
5% of Income Tax |
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