Union Budget 2026-27 - Finance Bill, 2026

The rates of surcharge on the amount of income-tax for the purposes of the Union are specified in Paragraph F of Part I-B of the First Schedule and are the same as that specified for the AY 2025-26. The surcharge shall not apply on income-tax computed on income of specified fund (referred to in Schedule VI [Note 1(g)]) that is chargeable under section 210(1)[Table: Sl. No. 1]. Further, for person whose income is chargeable to tax under section 202 of the Act, the surcharge at the rate of 37% on the income or aggregate of income of such person (excluding the dividend income or capital gains under the provisions of sections 196, 197 and 198 of the Act) exceeding five crore rupees is not applicable. In such cases the surcharge is restricted to 25%.

 

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Full Text:

Union Budget 2026-27 - Finance Bill, 2026

Surcharge on income-tax stays unchanged; specified fund income exempt and special-assessment persons face a 25% surcharge cap. Surcharge rates remain unchanged from the prior assessment year. Surcharge does not apply to income-tax computed on income of a specified fund as noted in the tax schedule. For persons assessed under the special assessment procedure, the higher surcharge tier on income above the high-income threshold (excluding dividend income and capital gains) is not applied and the surcharge is restricted to 25%.