Dear Members
If taxable income of individual exceeds Rs. 1 crore than there is a surcharge of 10% on income tax.
Finance Act 2013 says the following:
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions
of this Paragraph, or in section 111A or section 112, shall, in the case of every
individual or Hindu undivided family or association of persons or body of
individuals, whether incorporated or not, or every artificial juridical person
referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,
having a total income exceeding one crore rupees, be increased by a surcharge
for the purpose of the Union calculated at the rate of ten per cent of such incometax:
Provided that in the case of persons mentioned above having total income
exceeding one crore rupees, the total amount payable as income-tax and
surcharge on such income shall not exceed the total amount payable as incometax
on a total income of one crore rupees by more than the amount of income
that exceeds one crore rupees.
Please explain the part highlighted with an example.
How will this relief calculated?
Thanks
Shivani
CAclubindia
