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surcharge on total income

DIPAK AGARWAL (Service) (554 Points)

29 July 2010

In our one co. while calculating income tax liability for the A/y 09-10. Total taxable income comes to Rs. 80 Lacs while taxable income as per 115JB MAT book profit come to Rs. 143 Lacs.

But tax liabilty is higher as per normal total taxable income i.e. 80 Lacs.

My question is that where Surcharges is applicable @ 10% on tax liability even if it is calculated as higher on normal total taxable income?

pl. suggest.

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5 Replies

CA. BIJENDER KR. BANSAL (ACA, B.COM) (8148 Points)
Replied 29 July 2010

Minimum Alternate Tax (MAT) is levied @ 18 percent of the adjusted book profits in the case of those companies where income-tax payable on the taxable income according to the normal provisions of the Income-tax Act, 1961 (the Act), is less than 18 percent of the adjusted book profits.

MAT credit is available for 10 years

Surcharge is applicable @ 7.5 percent in the case of domestic companies if the adjusted book profits are in excess of INR 10,000,000. Marginal relief may be available

Education cess is applicable @ 3 percent on income-tax (inclusive of surcharge, if any).

Read more: https://www.taxguru.in/budget-2010/tax-rate-applicable-for-a-y-2011-12-on-income-dividend-wealth-mat-stt-capital-gain-and-presumptive-income.html#ixzz0v37KMtHu

yES, YOU HAVE TO PAY SURCHARGE ON MAT .

CLICK ON BELOW LINK

https://www.taxguru.in/budget-2010/tax-rate-applicable-for-a-y-2011-12-on-income-dividend-wealth-mat-stt-capital-gain-and-presumptive-income.html

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Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 29 July 2010

If book profits calculated as per Section 115JB exceeds Rs. 1 crore then surcharge leviable otherwise not on and that too for MAT only not for income tax purpose.

So no surcharge if tax in being paid as per normal provisions of income tax and total income below Rs. 1 cr.

1 Like

Dharmendra Jha (Asst. Manager Finance) (100 Points)
Replied 29 July 2010

yes aditya is write surcharge is applicable if profit exceeds rs. 1 crore

(Guest)

Originally posted by : Aditya Maheshwari
	If book profits calculated as per Section 115JB exceeds Rs. 1 crore then surcharge leviable otherwise not on and that too for MAT only not for income tax purpose. So no surcharge if tax in being paid as per normal provisions of income tax and total income below Rs. 1 cr.