Applicability of surcharge and rate of surcharge for AY2022-23

This query is : Resolved

Venkateshwarlu Pulluri (Querist)
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20 February 2024 Good evening Sir/s,

what is the applicable surcharge for AY2022-23 for the gross total income 74,10,814/- CPC levied Rs.16,87,570/- surcharge in their proceedings, where as tax on such income is Rs.19,00,285/- kindly guide me in this regard

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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06 July 2024 For the Assessment Year (AY) 2022-23, the surcharge applicable on income tax in India varies based on the total income and the category of taxpayer. Surcharge is levied on the income tax amount after deducting deductions, exemptions, and rebates.

### Calculating Surcharge:

1. **Determine Total Income**: In your case, the gross total income is Rs. 74,10,814/-. This is the starting point for calculating income tax.

2. **Calculate Income Tax**: Based on the provided figures, the tax on the income is Rs. 19,00,285/-.

3. **Determine Applicable Surcharge**:
- Surcharge rates vary based on the income slab. For AY 2022-23, the surcharge rates for individuals, Hindu Undivided Families (HUFs), firms, and other taxpayers are as follows:
- 10% of income tax where total income exceeds Rs. 50 lakhs but does not exceed Rs. 1 crore.
- 15% of income tax where total income exceeds Rs. 1 crore.

4. **Apply Surcharge**: Based on the income tax amount of Rs. 19,00,285/-, if the gross total income exceeds Rs. 1 crore, the surcharge applicable would be 15% of the income tax amount.

### Example Calculation:

- Income Tax: Rs. 19,00,285/-
- Surcharge (15% on income tax): 15% of Rs. 19,00,285/- = Rs. 2,85,043/-

### Total Tax Liability:

- Total Tax Payable = Income Tax + Surcharge
- Total Tax Payable = Rs. 19,00,285/- + Rs. 2,85,043/-
- Total Tax Payable = Rs. 21,85,328/-

### Review of CPC Proceedings:

If the Centralized Processing Centre (CPC) has levied a surcharge of Rs. 16,87,570/- on your income tax of Rs. 19,00,285/-, this appears to be incorrect based on the standard surcharge rates. The correct surcharge should be 15% of the income tax amount.

### Action Steps:

1. **Review Proceedings**: Review the details provided by the CPC and verify if the correct surcharge rate has been applied.

2. **Rectification Request**: If the surcharge levied is incorrect, you can file a rectification request with the CPC providing the correct calculation based on the surcharge rates applicable for AY 2022-23.

3. **Consultation**: It may also be beneficial to consult with a tax professional or accountant who can assist in verifying the calculations and advising on the correct course of action.

By ensuring the correct application of surcharge rates, you can accurately determine your total tax liability for AY 2022-23.