| Question And Answer | |
|---|---|
| Subject: | AY 2024-25 Rate of Surcharge on income-tax |
| Category: | Income-Tax |
| Querist: | vswaminathan |
| Answered by: | Advocate Neelam Jadhav |
| Tags: | Rate of surcharge AY. 2024 -25, Surcharge |
| Date: | October 23, 2023 |
Will you please clarify for AY 2024-25 what is the Rate of Surcharge on income-tax on longterm capital gains of Rs. 130000 and what is the marginal relief ?
: For AY 2024 – 2025 Surcharge rates are as below:
10% of Income tax if total income is more than Rs.50 lakh
15% of Income tax if total income is more than Rs.1 crore
25% of Income tax if total income is more than Rs.2 crore
37% of Income tax if total income is more than Rs.5 crore
In Budget 2023, the highest surcharge rate of 37% has been reduced to 25% under the new tax regime. (Applicable from 1st April 2023)
However, Surcharge rates of 25% or 37%, will not be applicable to the income which is taxable under sections 111A (Short Term Capital Gain on Shares), 112A (Long Term Capital Gain on Shares), and 115AD (Tax on the income of Foreign Institutional Investors). Therefore, the highest surcharge rate on the tax payable for such incomes will be 15%.
Hence, the Income earned from the Long Term Capital Gain of Rs.1,30,000/- is below 50 lakhs and not liable to pay a surcharge, however, the marginal relief can be obtained at the time of making the final tax computation.
Pending EXPERT’s Answer:The need for seeking an answer may not have at all arisen,but for the fact that someone (Or may be more !?) has , for reasons known only to him,seriously doubted /cast aspersions on the true implications of the REVENUE’s Guidance Note since released , for the benefit of assessees paying tax, legally and legitimately due.
For MORE, suggest to please look through the posted comments /replies @ >
^ > LINK > https://itatonline.org/digest/qa/new-surcharge-scheme-contd/#comments
ADMN < For my rejoinder to the ANSWER of your inhouse expert , please look up my Post on FB @https://www.facebook.com/swaminathanv3/posts/pfbid02PKiAUtK9VqbDpkzorsL6Xj3ThB9aJSMvcrvLf2MMD1NmfGEEDhYDqtVNTYq7nJtzl
Now look forward your expert's duly revised ANSWER – for serving the intended common purpose of one and all concerned and having /vested interests!
Apropos / In continuation of Pr. Posts (:
Refer : https://www.linkedin.com/posts/vswaminathan13_httpsitatonlineorgdigestqa-swaminathan-activity-7123586673426268162-okNa?
ATTN of ADMN/EDITOR
Kindly look through the ‘ILLUSTRATION’ being sent to your e’mail ID. ALSO share with your Inhouse Experts for a better appreciation of the implications of the REVENUE’s GUIDANCE Note (drawn attention to)released through the ITD Portal @
https://incometaxindia.gov.in/tutorials/78.calculation-of-taxable-salary-income.pdf?
courtesy
(in the larger ‘PUBLIC INTEREST’)
ADD (pending the inhouse expert’s reviewed and revised ANSWER):
Sample ILLUSTRATION furnished below, based on hypothetical DATA (Numbers) will help anyone interested to get a grip of the subject changes in surcharge calculation since announced through the ITD Portal.
REVENUE’s Guidance Note Followed:
Chargeable Income Rs 10630000
OLD Table IT rates applied
5000000 1237500
5500000 1650000
Salary, etc 10500000 2887500 < IT
LTCG 130000 SC @10% 165000 followed and applied as personally construed !
courtesy
DISclaimer: In my perspctive,founded on own firm conviction,for approaching the CPC for claiming a refund of excess surcharge collected, aggrieved assessees, -under professional advice/guidance or otherwise,- if so decide , may have to work out such excess using the actual DATA in a case to case, and yearwise, basis- for AYs 2020 to 2023-24, being the years for which the NEW SURCHARGE SCHEME has been in force.
Back/OVER to >
ADMN
Some tech. glitches- correct the alignment of the DATA as POSTED!
Sent again by mail the cc of ..
Editor/ADMN
Refer my immediately preceding posts-
Suggst you should firstly delete the wrongly displayed one with errors for no fault of me; instead,have displayed my doct.,of ILLUSTRATION SENT to you via mail, immediately, for sake of good order !
To Reshare further FEEDinput (So done also on Linkedin):
It may, as expected of, have been noted that the beneficial GUIDANCE Note recently released through the ITD Portal , in terms, has application mainly to persons with tax status of ‘individual’ and filing tax return in FormNo.2.
May be, such persons, especially with lower income levels, with a view to taking advantage of the changes effected,prefer simply to apply for refund of excess surcharge collected and be satified with it, if granted.
In any case,the right to file an appeal or petition on any other ground /point of grievance cannot be denied!
However, as regards the other category of persons,- such as charitable institutions and assessable entitities , there is no knowing as yet, as to what is in store for them. How long to wait in the hope of further like developments might have to be decided , sooner than later – not indefinitely.
KEY NOTE
POSER: Does not the very fact that the REVENUE itself considered it necessary, thought fit and had to issue the GUIDANCE Note,-making substantial changes in the scheme for levy of surcharge, – goes to amply support the point that the extant ‘formula’ (vague on the face of it) was faulty /not workable/ not be legally or legitimately accept-able/-ed , for more than one reason ?!? 😫
OVER for eminent opinion of EXPERTS !
courtesy
MoRe (to reshare):
Should there be, at any point of time, found to have no hope left for any further substantially favourable material developments ,- apart from the case of individuals in lower or higher income levels, -in the cases of charitable institutions and other assessable entities, similarly aggrieved- decision may happen to be taken, either severally or jointly as a group, -to take on and pursue the issues by recourse to judicial adjudication. In that event, presumably, the primary contention may have to be that as there has been no clear -cut formula or methodology laid down for determining the basis to levy surcharge, the NEW SURCHARGE SCHEME is ultra vires the Constitution and therefore, should be struck down as improper.
A longline of the SC and High court decisions settling the related proposition(s) may have to be cited and arguments forcefully addressed. For the purpose, the proposition as indicated in the above ‘KEY NOTE’ may lend good support.
ADD-on> https://www.linkedin.com/feed/update/urn:li:activity:7127455328199135232/
ADD-on One MORE (with no sign, as yet, of the previous FEEDposts having made any difference) >https://www.linkedin.com/posts/vswaminathan13_income-tax-rates-for-financial-year-2023-activity-7128227882224521216-8Pmk?utm_source=share&utm_medium=member_desktop
A SAGA of PERpetuated SUSPENSE>>>>>>>?
https://www.thehindubusinessline.com/economy/collection-from-surcharges-on-taxes-estimated-to-rise-over-four-times-in-fy23-fy24-over-fy22-actuals/article66646563.ecehttps://www.thehindubusinessline.com/economy/collection-from-surcharges-on-taxes-estimated-to-rise-over-four-times-in-fy23-fy24-over-fy22-actuals/article66646563.ece
The reported DATA is, outdated, being as of Mar 2023. That is before the release of the GUIDANCE Note by the REVENUE exclusively through the ITD Portal.
Any information in case the SYSTEM (CPC) has since been revamped to incorporate the ‘CHANGES’ expected to heve been made to align and accord with the said GUIDANCE Note !?
By the way, the only limited INFO., gathered from close(D) circles is that refund claims lodged, if any, with the CPC, of the excess surcharge auto calculated and collected by the SYSTEM have not been responded to but kept a ‘guarded secret’ ?!?
^>Collection from Surcharge on taxes estimated to rise over four times in FY23, FY24 over FY22 actuals
thehindubusinessline.com •