What is the rate of surcharge- applicable to individuals having total income exceeding Rs. 1 crore ?

The correct answer is - 0.15

Key Points

• Surcharge Rate
  • The surcharge rate applicable to individuals with total income exceeding Rs. 1 crore is 15% as per the current tax regulations.
  • This rate is part of the progressive taxation system aimed at higher-income groups.
  • The surcharge is an additional charge on the income tax and is calculated on the total income tax payable.
  • This surcharge applies uniformly irrespective of the source of income.

Additional Information

• Taxation Structure
  • India follows a progressive taxation structure where the tax rate increases as the total income increases.
  • Individuals with higher incomes are subject to higher tax rates and surcharges to ensure equitable distribution of tax burdens.
• Income Slabs
  • The income tax slabs are defined by the government and are subject to change based on the annual budget announcements.
  • For example, as of the latest tax year, individuals earning between Rs. 50 lakh to Rs. 1 crore have a surcharge rate of 10%, while those earning above Rs. 1 crore have a surcharge rate of 15%.
• Impact of Surcharge
  • The surcharge significantly impacts the net tax liability of high-income individuals, making tax planning essential.
  • Taxpayers need to consider the surcharge while calculating their estimated tax liabilities and planning their investments.