What is Surcharge?
Surcharge is an additional charge levied for persons earning Income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates.
- 10% – Taxable Income above ₹ 50 lakh – up to ₹ 1 crore.
- 15% – Taxable Income above ₹ 1 crore – up to ₹ 2 crore.
- 25% – Taxable Income above ₹ 2 crore – up to ₹ 5 crore.
- 37% – Taxable Income above ₹ 5 crore.
What is Marginal Relief?
Marginal relief is a Relief from Surcharge, provided in cases where the Surcharge payable exceeds the additional income that makes the person liable for Surcharge. The amount payable as Surcharge shall not exceed the amount of income earned exceeding ₹ 50 lakh, ₹ 1 crore, ₹ 2 crore or ₹ 5 crore respectively.
What is Health and Education cess?
Health and education cess is collected by the government of India with an aim to improve the healthcare and educational facilities in the deprived areas of rural and semi-urban India. The current health and education cess rate for FY 2023-2024 (AY 2024-2025) is 4% over the tax payable.