Applicability of Surcharge

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Senthil.S (Querist)
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01 August 2008 Hi,

I want to know the whether Surchage is applicable or not on FBT if my Total Income doesnot exceeds Rs. 1 crore.

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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01 August 2008 Fringe Benefit Tax shall be payable at the rate of 30% of the Value of Fringe Benefits computed in the manner as shown in VALUATION OF FRINGE BENEFITS: SECTION 115WC.

Surcharge on Gross Tax Liability @ 10% in case of Domestic Company/ Firm is leviable if the Total Income exceeds Rs. 10 Lakhs.

Basic Education Cess @ 2% plus Secondary Higher Education Cess @ 1% will be applicable on the Tax Liability calculated including Surcharge.

So effective tax rates in case of Domestic Company/ Firm will be:-

If Total Income exceeds Rs. 10 Lakhs Domestic Company 30% + 10% + 2% +1% 33.99%
Partnership Firm 30% + 10% + 2% +1% 33.99%
If Total Income is up to Rs. 10 Lakhs Domestic Company 30% + 2% +1% 30.90%
Partnership Firm 30% + 2% +1% 30.90%