Maginal Relief from Surcharge under Income Tax

[umeshkumar jhawar]

Dear Experts

I have total Income of Rs. 2,35,00,000.00 in which Income u/s 111A/112/112A is Rs. 15,00,000/- and Income From Salary Rs. 220,00,000/-

Now Marginal relief from surcharge is 15% on Income u/s 111A/112/112A and other that that 25%.

Now How to calculate Marginal Relief.

While Calculating Marginal Relief for Change in Surcharge Rate whether we need to consider Total Income Rs. 2,35,00,000/- or 2,20,00,000/-.

AI Summary

Marginal relief from surcharge: compare total-income tax (including surcharge) with threshold tax plus excess income to limit surcharge.
Surcharge liability is determined with reference to the Total Income and not individual components. Tax computation must allocate tax to each income component and apply the appropriate surcharge rate, with a statutory cap limiting surcharge on certain specified income categories. For marginal relief the tax (including surcharge) on the actual Total Income must be compared to the sum of tax (including surcharge) on the threshold total income and the excess of Total Income over that threshold; thus the Total Income is used in the marginal relief test.