May 2021
The respective rate of surcharge i.e 10% or 15% or 25% or 37% mentioned below shall become applicable on the tax computed based on the total income 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 1961.
Below mentioned are the applicable Rates of Surcharge for AY 22-23 depending on the range of total income as per Surcharge on income tax under Paragraph A under Part III of the Finance Act 2020:
|
Range of Net Income |
Rate of Surcharge |
|
Exceeding Rs.50 Lakhs upto Rs. 1 cr |
10% |
|
Exceeding Rs.1 cr upto Rs.2 crs |
15% |
|
Exceeding Rs.2 crs upto Rs.5 crs |
25% |
|
Exceeding Rs.5 crs |
37% |
Provided that in case where the total income includes any income by way of Dividend or income chargeable under section 111A and 112A of the Income-tax Act, the rate of surcharge on the amount of income-tax computed on that part of income shall not exceed 15%.
Below are few illustrations to help us understand when the different rates of surcharge shall become applicable for AY 22-23:
|
Situation |
A |
B |
C |
D |
|
Rupees in Thousands ('000) |
||||
|
Income other than Capital Gain including income taxed at special rates |
4,000 |
10,000 |
54,000 |
60,000 |
|
Divdend income |
2,500 |
11,000 |
21,000 |
60,000 |
|
Capital Gain u/s 111A* & 112A** |
150 |
1,500 |
25,000 |
- |
|
Capital Gain other than Gains u/s 111A* & 112A** |
- |
- |
750 |
250 |
|
Total Income |
6,650 |
22,500 |
1,00,750 |
1,20,250 |
|
Surcharge rate on Gains u/s 111A* & 112A** |
10% |
15% |
15% |
0% |
|
Surcharge on Dividend income |
10% |
15% |
15% |
15% |
|
Surcharge rate on income other than Dividend & Gains u/s 111A* and 112A** |
10% |
25% |
37% |
37% |
|
Clause under Surcharge on Income Tax under Paragraph A of Part III of Finance Act (No.2) 2022 |
(a) |
(c ) |
(d) |
(d) |
*111A refers to Short Term Capital Gain tax computed at 15% on transfer of an equity share or a unit of an equity oriented fund or a unit of a business trust on which STT has been charged.
**112A refers to Long Term capital Gain tax computed at 10% on transfer of an equity share, or a unit of an equity oriented fund or a unit of a business trust exceeding Rs 100,000/- on which STT has been charged.
05 May 2022
