Rate of tax which is 10%,
will surcharge(if applicable) and cess @ 4% also be added to this rate of 10%?
I read in ICAI study mat that rate of 10% will be further increased by surcharge if applicable and cess.
Wanted to confirm will the effective rate become 10.4% ?(if cess is applied)
yes, the rate of tax is 10% and cess @ 4% on tax amount
tax liability =
tax on total income at applicable rates + surcharge, at applicable rate. +
cess @ 4% (-)
rebate u/s 87A if total income is upto 3.5 lakh
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