Marginal Relief calculation above 50 Lakh
Marginal Relief calculation above 50 Lakh
Marginal relief will be provided to certain taxpayers up to the amount of the difference between the excess tax payable (including surcharge) on the income above Rs.50 lakhs, 1Cr and 2 Cr and the amount of income that exceeds Rs.50 Lakhs, 1 Cr and 2 Cr.
Example -
The surcharge that is coming in the above illustration (computation), calculation is given below –
Calculate tax on total income
Total Tax – 13,42,500
Surcharge @ 10 % on total tax – 1,34,250
Total Tax with Surcharge (A) – 14,76,750
Now calculate tax on up to 50 Lakh.
Tax on income Up to 50 Lakh (B)– 13,12,500
Excess Tax Payable (A-B) – 1,64,250
Balance Remaining Income (C) – 1,00,000
Marginal relief = Excess Tax Payable – Balance Remaining Income
1,64,250 - 1,00,000 = 64250 (Total Marginal relief)
Net Surcharge - 1,34,250 (surcharge on total income) – 64,250 (marginal relief) = 70,000
Hope, this Helps.
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