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Budget
- PREV DEFINITIONSupplementary GrantsThe additional grant required to meet the required expenditure of the government is called Supplementary Grants.Read More
- NEXT DEFINITIONTax RevenueTax Revenue forms part of the Receipt Budget, which in turn is a part of the Annual Financial Statement of the Union Budget.Read More
What is 'Surcharge'
Definition: As the name suggests, surcharge is an additional charge or tax.
Description: A surcharge of 10% on a tax rate of 30% effectively raises the combined tax burden to 33%. In the case of individuals earning a net taxable salary of more than Rs 1 crore, a surcharge of 10% is levied on tax liability.
However, marginal relief is also provided as sometimes the increase in tax liability after factoring surcharge becomes more than the increase in income above Rs 1 crore.
Surcharge at the rate of 5% is levied on domestic corporations if net income is in the range of Rs 1 cr to Rs 10 cr. If the net income exceeds Rs 10 cr, surcharge at the rate of 10% is levied.
Surcharge at the rate of 2% is levied on foreign corporations if the net income is in the range of Rs 1 cr to Rs 10 cr. If the net income exceeds Rs 10 cr, the surcharge is increased to 5%. Marginal relief is given to both domestic and foreign companies in case the net income exceeds Rs 1 cr and Rs 10 cr.
Also See: Education Cess
Check out: Unemployment Trap Definition, System Testing Definition, Jovian Planet Definition, Market Stabilisation Scheme Definition, Equity Finance Definition, Double Blind Testing Definition, Internal Benchmarking Definition, Primary Deficit Definition, Future Delivery Definition, Etf Definition
Description: A surcharge of 10% on a tax rate of 30% effectively raises the combined tax burden to 33%. In the case of individuals earning a net taxable salary of more than Rs 1 crore, a surcharge of 10% is levied on tax liability.
However, marginal relief is also provided as sometimes the increase in tax liability after factoring surcharge becomes more than the increase in income above Rs 1 crore.
Surcharge at the rate of 5% is levied on domestic corporations if net income is in the range of Rs 1 cr to Rs 10 cr. If the net income exceeds Rs 10 cr, surcharge at the rate of 10% is levied.
Surcharge at the rate of 2% is levied on foreign corporations if the net income is in the range of Rs 1 cr to Rs 10 cr. If the net income exceeds Rs 10 cr, the surcharge is increased to 5%. Marginal relief is given to both domestic and foreign companies in case the net income exceeds Rs 1 cr and Rs 10 cr.
Also See: Education Cess
Check out: Unemployment Trap Definition, System Testing Definition, Jovian Planet Definition, Market Stabilisation Scheme Definition, Equity Finance Definition, Double Blind Testing Definition, Internal Benchmarking Definition, Primary Deficit Definition, Future Delivery Definition, Etf Definition
- PREV DEFINITIONSupplementary GrantsThe additional grant required to meet the required expenditure of the government is called Supplementary Grants.Read More
- NEXT DEFINITIONTax RevenueTax Revenue forms part of the Receipt Budget, which in turn is a part of the Annual Financial Statement of the Union Budget.Read More
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