Marginal Relief on Domestic Company

This query is : Resolved

K.A.SARAVANEN

K.A.SARAVANEN (Querist)
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06 January 2010 Please some one to give illustration on marginal relief for the domestic company having taxable income exceeding 1 crore for the assessment year 2010-11.
Taxable income 3,25,00,000 means, tax and marginal relief?

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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06 January 2010 Tax on Rs. 3,25,00,000 @ 30% = 97,50,000
Add: Surcharge @ 10% = 9,75,000
TOTAL TAX = 1,07,25,000

Tax on Rs. 1,00,00,000 @ 30% = 30,00,000

NOW YOUR INCOME INCREASED = 3,25,00,000 - 1,00,00,000
= 2,25,00,000

BUT TAXALIABILITY INCREASED = 1,07,25,000 - 30,00,000
= 77,25,000

Because Tax Liability is LESS in comparison of Increased Income, therefore there will NOT be any marginal income concept.

Regards!!!
Dinesh S. Adhikari

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