Surcharge :
The rates of surcharge applicable for A.Y.2017-18 are as follows –
(i) Individual/HUF/AOP/BOI/Artificial juridical person
Where the total income exceeds ` 1 crore, surcharge is payable at the rate of 15% of income-tax computed in accordance with the provisions of para (i)(a)/(b)/(c) above or section 111A or section 112.
Marginal relief is available in case of such persons having a total income exceeding ` 1 crore i.e., the additional amount of income-tax payable (together with surcharge) on the excess of income over ` 1 crore should not be more than the amount of income exceeding ` 1 crore.
(ii) Co-operative societies/Local Authorities/Firms/LLPs
Where the total income exceeds ` 1 crore, surcharge is payable at the rate of 12% of income-tax computed in accordance with the provisions of para (ii)/(iii)/(iv) above or section 111A or section 112.
Marginal relief is available in case of such persons having a total income exceeding ` 1 crore i.e., the additional amount of income-tax payable (together with surcharge) on the excess of income over ` 1 crore should not be more than the amount of income exceeding ` 1 crore.
(iii) Domestic company
(a) In case of a domestic company, whose total income is > ` 1 crore but ≤ ` 10 crore
Where the total income exceeds ` 1 crore but does not exceed ` 10 crore, surcharge is payable at the rate of 7% of income-tax computed in accordance with the provisions of para (v)(1) above or section 111A or section 112. Marginal relief is available in case of such companies i.e. the additional amount of income-tax payable (together with surcharge) on the excess of income over ` 1 crore should not be more than the amount of income exceeding ` 1 crore.
(b) In case of a domestic company, whose total income is > ` 10 crore
Where the total income exceeds ` 10 crore, surcharge is payable at the rate of 12% of income-tax computed in accordance with the provisions of para (v)(1) above or section 111A or section 112.
Marginal relief is available in case of such companies i.e., the additional amount of income-tax payable (together with surcharge) on the excess of income over ` 10 crore should not be more than the amount of income exceeding ` 10 crore.
(iv) Foreign company
(a) In case of a foreign company, whose total income is > ` 1 crore but ≤ ` 10 crore
Where the total income exceeds ` 1 crore but does not exceed ` 10 crore, surcharge is payable at the rate of 2% of income-tax computed in accordance with the provisions of paragraph (v)(2) above or section 111A or section 112.
Marginal relief is available in case of such companies i.e., the additional amount of incometax payable (together with surcharge) on the excess of income over ` 1 crore should not be more than the amount of income exceeding ` 1 crore.
(b) In case of a foreign company, whose total income is > ` 10 crore
Where the total income exceeds ` 10 crore, surcharge is payable at the rate of 5% of income-tax computed in accordance with the provisions of para (v)(2) above or section 111A or section 112.
Marginal relief is available in case of such companies i.e., the additional amount of income-tax payable (together with surcharge) on the excess of income over ` 10 crore should not be more than the amount of income exceeding ` 10 crore.
Note – Marginal relief would also be available to those companies which are subject to minimum alternate tax under section 115JB, in cases where the book profit (i.e. deemed total income) exceeds ` 1 crore and ` 10 crore, respectively.
Education cess / Secondary and higher education cess on income-tax
The amount of income-tax as increased by the union surcharge, if applicable, should further be increased by an “Education cess on income-tax”, calculated at the rate of 2% of such income-tax plus surcharge, wherever applicable. Further, “Secondary and higher education cess on income-tax” (SHEC) @1% of income-tax and surcharge, wherever applicable, is leviable to fulfill the commitment of the Government to provide and finance secondary and higher education. Education cess, including SHEC, is leviable in the case of all assessees i.e., individuals, HUFs, AOP/BOIs, artificial juridical persons, cooperative societies, firms, LLPs, local authorities and companies. No marginal relief would be available in respect of such cess.