• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Your Finance Book

Income Tax | Investing | Stock Market

  • Stocks
    • 10 reasons why share prices decline in the stock market
    • What to look for in growth investing strategy for better return
    • 10 things you must understand before buying stocks
    • Speculating Vs Investing Vs Saving
    • 5 Risk free tax saving investments
    • A beginner’s guide to understand stock’s value – Explained with examples
    • Mutual Fund Basics
  • GST
    • GST registration in India – all you need to know
    • Tax invoice in GST-A complete beginner’s guide for taxpayers
    • Input tax credit in GST – A beginners guide to claim ITC
    • What is inter-state supply of goods and/or services under GST
    • What is intra-state supply of goods and/or services under GST
  • Income tax
  • Tax Rates
  • ITR Due dates

Income Tax Surcharge for the AY 2014-2015 & 2015-2016

Last Modified on May 8, 2014 by Editorial Staff

Surcharge is a fee or charges that are added to the tax. For the purpose of tax calculation, surcharge is charged at the rate of 10% for an individual and others (except for a domestic and foreign company) if the total income is above Rs 1 Crore.

For a domestic company and foreign company surcharge is 5% and 2% respectively if total income is in between of Rs 1 Crore to Rs 10 Crore. If it is more than Rs 10 Crore then surcharge for a domestic company is 10% and for foreign company its 5%.

Education cess of 2% will be calculated on the total amount of tax and surcharge. In the same way, secondary and higher secondary cess will also be calculated @ 1% of tax and surcharge.Surcharge for the Assessment Year 2014-2015

Example for calculation of surcharge and Cess

Suppose your Taxable Income is Rs. 1 Crore

Tax @ 30% is Rs. 30 Lakhs

Surcharge will be calculated @ 10% assuming the tax payer is an individual. So surcharge amount will be Rs 3, 00,000

Education cess and secondary and higher secondary cess @ 3% will be calculated on Tax + Surcharge = (30 lakhs + 3 lakhs) * 3%= .99 lakhs

Total amount to be paid = 30+3+.99=33.99 lakhs

Marginal Relief in the Case of Surcharge

If your net income exceeds Rs. 1 Crore then total amount payable as tax and surcharge on such income shall not exceed the total amount payable as tax on net income of Rs. 1 Crore by more than the amount of income that exceeds Rs. 1 Crore.

There is another marginal relief for corporate assessee (i.e. domestic company or foreign company). In the case of corporate assessee, if the net income of a corporate assessee for the assessment year 2014-2015 exceeds Rs. 10 Crore then the total amount payable as tax and surcharge shall not exceed the total amount payable as tax and surcharge on a net income of Rs. 10 Crore by more than the amount of income that exceeds RS. 10 Crore.

Surcharge in the case of TDS/TCS

Surcharge will not be deducted if any salary paid to a resident or non resident having a total income of less than Rs. 1 Crore. If it exceeds 1 Crore then 10% as surcharge will be applicable to you i.e. 10% on your tax has to be collected as TDS.

If any payment or credit other than salary is given to a non resident or foreign company which exceeds Rs. 1 Crore then Surcharge in addition to the tax rate has to be collected and deposited with the department. Surcharge as discussed above will be applicable is this case.

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)

Filed Under: Income tax, IT Return Filing

About the Author

Editorial Staff at Yourfinancebook.com is a team of finance professionals. The team has more than a decade experience in taxation, stock market and personal finance.

Primary Sidebar

Financial Ratios

  • Accounting tools you can use to choose a winning stocks
  • What are the tools and techniques used in financial statements analysis
  • Can Price to earnings – P/E ratio be used for stock investing
  • Why Price earnings to growth – PEG is used by investors
  • How Earnings per Share or EPS can help you
  • How to use debt to equity – D/E ratio
  • What is Interest coverage ratio

Don’t see a topic? Search our entire website:

Email Newsletter

Sign up to receive email updates daily and to hear what's going on with us!

Privacy Policy

Popular Posts

  • How to protect yourself from stock market frauds and scams
  • Income tax rates for Financial Year 2021-22 and 2022-23
  • How to decide which strategy is right for you in stock investing
  • Stock market basics – A complete guide for beginners
  • How to get tax deductions on Life Insurance Premium – Section 80C
  • Why to use Japanese candlestick charting for trading and investing
  • 10 most commonly used stock market jargons you must know
  • How tax is deducted from Salary – 192
  • Tax to be deducted on Professional Fees – 194J
  • TDS On Rent – 194I
  • Things to remember while buying stocks on margin
  • Top 20 reasons why income tax PAN is a must for Indians

Footer

Trending Now

  • What to look for in the financial statements before investing in stocks
  • How to manage fund while investing in stocks
  • A beginner’s guide to mutual fund investing
  • Why share prices move up and down in stock market
  • Price Action trading – How candlestick helps to read mass psychology

Stay In Touch With Us

  • Twitter
  • Facebook

SITE LINKS

  • About Us
  • Contact Us
  • Terms and Conditions
  • Disclaimer
  • Privacy Policy
  • Finance

Legal Disclaimer

The information available through this Site is provided solely for informational purposes on an “as is” basis at user’s sole risk. The information is not meant to be, and should not be construed as advice or used for investment purposes. Yourfinancebook.com does not provide tax, investment or financial services and advice. We make no guarantees … Continue Reading... about Disclaimer

Copyright © 2021 yourfinancebook.com · All Rights Reserved.