Education Cess & surcharges

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Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2010 Dear Sir
I want to know regarding education cess & surcharge calculate after how much income & how calculate please guide me

C S PUNDIR

CA Sanat Pyne

CA Sanat Pyne (Expert)
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31 July 2010 Education cess will be calculated on the income tax + surcharge(if applicable) @ 2% and 1% she cess.

The rates of surcharge applicable for A.Y.2010-11 are as follows -
(i) Individual/HUF/AOP/BOI/Artificial juridical person
No surcharge would be leviable in case of such persons.
(ii) Co-operative societies/Local authorities
No surcharge would be leviable on co-operative societies and local authorities.
(iii) Firms/LLPs
No surcharge would be leviable on firms and LLPs.
(iv) Domestic company
Where the total income exceeds Rs.1 crore, surcharge is payable at the rate of 10%
of income-tax computed in accordance with the provisions of para (v)(1) above or
section 111A or section 112. Marginal relief is available in case of such companies
having a total income exceeding Rs.1 crore i.e. the additional amount of income-tax
payable (together with surcharge) on the excess of income over Rs.1 crore should
not be more than the amount of income exceeding Rs.1 crore.
(v) Foreign company
Where the total income exceeds Rs.1 crore, surcharge is payable at the rate of
2½% of income-tax computed in accordance with the provisions of paragraph (v)(2)
above or section 111A or section 112. Marginal relief is available in case of such
companies having a total income exceeding Rs.1 crore i.e. the additional amount of
income-tax payable (together with surcharge) on the excess of income over Rs.1
crore should not be more than the amount of income exceeding Rs.1 crore.

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