What Is Surcharge Under Income Tax In India?

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.

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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

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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%.

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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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