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Query on surcharge calculation

01 February 2022

If the total taxable income after deductions is RS. 50,57,500 for the F.Y. 2021-22 how do you calculate surcharge on it?

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10 Replies

annalisa noronha (18 Points)
Replied 01 February 2022

Is this correct please reply

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rama krishnan (12239 Points)
Replied 02 February 2022

You didn't compute marginal relief

annalisa noronha (18 Points)
Replied 02 February 2022

Didn't understand how to calculate I tried the same formula

suraj (Student CA Final ) (288 Points)
Replied 02 February 2022

Step First:
Calculate total tax on 50,57,500.i.e 13,35,150
add: 10% surcharge on total tax i.e 1,33,515
Net tax payable.....14,68,665

rama krishnan (12239 Points)
Replied 03 February 2022

Madam,

The tax calculation for total income of Rs. 50,57,500/- is as follows:

Up to 2.5 lakhs	Nil	Nil
2.5 to 5 lakhs	5%	12500
5,00,001 to 10 lakhs	20%	100000
10,00,001 to 50,57,500	30%	1217250
Total tax payable		1329750
Surcharge @ 10%		132975
Total tax plus surcharge		1462725

But if the total income is Rs. 50,00,000/- then the tax payable would be Rs. 1312500/-.

So for earning an additional income of Rs. 57,500/- over and above Rs. 50,00,000/-, you have to pay additional tax of Rs. 1,50,225/-. So, the department had given marginal relief so that the additional tax paid on account of surcharge should not exceed the additional income earned the threshold limit i.e. Rs. 50,00,000/-, Rs. 1,00,00,000/-, as the case may be. In your case, since the additional tax payable (Rs. 1,50,225/-) on account of additional income of Rs. 57,500/- is higher, the surcharge of Rs. 132975/- would be restricted to 57,500/- and the net tax payable including surcharge would be Rs. 1370000/-