Applicability of Surcharge and Health & Education Cess

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....d at the rates in force as defined under the Finance Act, including surcharge and cess wherever applicable. Tax is deducted at the rates in force as defined under the Finance Act, including surcharge and cess wherever applicable. Payments to residents Generally, surcharge and cess are not applicable, as most resident TDS provisions prescribe fixed statutory rates. Where "rates in force" apply, the Finance Act determines the applicable rate. Generally, surcharge and cess are not applicable, as most resident TDS provisions prescribe fixed statutory rates. Where "rates in force" apply, the Finance Act determines the applicable rate. Payments to non-residents Where tax is deductible at "rates in force", surch....

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....uctor must refer to- • the relevant Finance Act; and • where applicable, the relevant Double Taxation Avoidance Agreement (DTAA). In such cases, the applicable rate may include- • income-tax, • surcharge; and • Health & Education Cess, subject to the provisions of the Act and the applicable treaty. Typical examples include- • Interest on securities; • Insurance commission; • Certain payments to non-residents under Section 393(2); • Other payments chargeable to tax in India to non-residents. Applicability in TCS The position under Section 394 is much simpler. Every TCS provision prescribes a....

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....crore but does not exceed Rs.5 crore(Excluding Dividend and capital gain) 25% Exceeds Rs.5 crore 25% (where the assessee opts for taxation under Section 202 of the Income-tax Act, 2025 / Section 115BAC of the Income-tax Act, 1961); 37% (in all other cases).   Note: • For income taxable under special provisions such as short-term capital gains under section 111A, long-term capital gains under sections 112 and 112A, and dividend income, the surcharge is generally restricted to 15%, except where specific provisions (e.g., section 115A, etc.) prescribe otherwise. B. Domestic Companies   Total Income Surcharge Rate Up to Rs.1 crore Nil Exceeds Rs.1 crore but doe....