How can we avail marginal relief on Surcharge paid instead of Wealth Tax ??
Dear Jitender, As per the budget 2015, Finance minister abolish the wealth tax act and increase the rate of surcharge which is applicable on the individual when its taxable income exceed the 1 crore rupees. revised surcharge rate is 12%. As per the income tax act if your tax including surcharge on your income exceed the incremental income than marginal relif is applicable. Ex: if your income is 10,100,000/- and assume income tax liability on your income is 3495408 including surcharge and with total tax on your income if your income is rs 10,000,000/- than tax is rs 3090000 than total incremental of tax due to increase of your income by rs 100000 is 405408. than you are liable to pay tax is rs 3090000+100000 only and marginal relief is rs 305,458. Any other query feel free to contact us. Writer CA Chitranjan Agarwal