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Surcharge Rates for A.Y. 2021-22 of certain assesses

FOR FINANCIAL YEAR 2020-21 (A.Y 21-22

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 21-22 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 21-22: 

Situation 

 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) 2020 

 (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 2021 

Surcharge Rates for A.Y. 2021-22 of certain assesses
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