Surcharge Rates for FY 2023-24 – Individual | HUF | Companies | Other Assessees
- Blog|Advisory|Income Tax|
- 4 Min Read
- By Taxmann
- |
- Last Updated on 25 April, 2024
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Table of Contents
- In case of Individual, HUF, AOP*, BOI, or AJP
- In case of a company
- In case of a co-operative society
- In case of any other assessee
- In case of unexplained income
- In case of MAT and AMT
- In case of secondary adjustment
- In case of tax on distributed income
The surcharge rate varies depending upon the status of the assessee and the nature of income. The rate of surcharge for Financial Year 2023-24 are as follows:
1. In case of Individual, HUF, AOP*, BOI, or AJP
In respect of an Individual, HUF, AOP, BOI and Artificial Juridical Person, the rate of surcharge for the Financial Year 2023-24 shall be as under:
|
Nature of Income |
Range of Total Income | ||||
| Up to Rs. 50 lakhs | More than Rs. 50 lakhs but up to Rs. 1 crore | More than Rs. 1 crore but up to Rs. 2 crores | More than Rs. 2 crores but up to Rs. 5 crores |
More than Rs. 5 crores |
|
| Short-term capital gain covered under Section 111A or under Section 115AD |
Nil |
10% | 15% | 15% |
15% |
| Long-term capital gain covered under Section 112A or under Section 115AD or under Section 1121 |
Nil |
10% | 15% | 15% |
15% |
| Dividend income (not being dividend income chargeable to tax at special rate under sections 115A, 115AB, 115AC, 115ACA) |
Nil |
10% | 15% | 15% |
15% |
| Unexplained income chargeable to tax under Section 115BBE |
25% |
25% | 25% | 25% |
25% |
| Any other income** |
Nil |
10% | 15% | 25% |
37%*** |
* The Finance Act, 2022 has put a cap on the rate of surcharge to 15% in case of an AOP consisting of only companies as its members. The rate of surcharge in case of such AOP shall be as follows:
- 10% where total income exceeds Rs. 50 lakh but does not exceed Rs. 1 crore;
- 15% where total income exceeds Rs. 1 crore.
Further, the Finance Act, 2023 provided that where the total income of a specified fund as referred to in Section 10(4D) includes income (other than capital gains) received in respect of securities taxable under Section 115AD, no surcharge shall be levied on tax on such income.
** The maximum rate of surcharge on tax payable on dividend income or capital gains referred to in Section 111A, Section 112, Section 112A or Section 115AD shall be 15%. However, where other income of a person does not exceed Rs. 2 crores, but after including the dividend income or capital gain as referred to in above provisions, the total income exceeds Rs. 2 crores then irrespective of the amount of other income, surcharge shall be levied at the rate of 15% on the amount of tax payable on aggregate of other income, dividend income and capital gain as referred to in above provisions.
*** From the Financial Year 2023-24, the surcharge rates on other income for Individuals, HUFs, AOP, BOI or Artificial Juridical Persons opting to pay tax under the new tax regime of Section 115BAC shall not exceed 25%. Thus, the income exceeding Rs. 5 crores shall be subject to the surcharge rate of 25% if the assessee opts for the new tax regime of Section 115BAC.
2. In case of a company
|
Company |
Range of Total Income† | ||
| Rs. 1 crore or less | Above Rs. 1 crore but up to Rs. 10 crore |
Above Rs. 10 crore |
|
| Domestic Company opting for section 115BA |
Nil |
7% |
12% |
| Domestic Company opting for section 115BAA |
10% |
10% |
10% |
| Domestic Company opting for section 115BAB |
10% |
10% |
10% |
| Any other domestic company |
Nil |
7% |
12% |
| Foreign company |
Nil |
2% |
5% |
†In respect of unexplained income as referred to in Section 115BBE, the rate of surcharge shall be 25%.
3. In case of a co-operative society
|
Company |
Range of Total Income† | ||
| Rs. 1 crore or less | Above Rs. 1 crore but up to Rs. 10 crore |
Above Rs. 10 crore |
|
| Co-operative society opting for section 115BAD | 10% | 10% | 10% |
| Co-operative society opting for section 115BAE | 10% | 10% | 10% |
| Any other Co-operative society | Nil | 7% | 12% |
†In respect of unexplained income as referred to in Section 115BBE, the rate of surcharge shall be 25%.
4. In case of any other assessee
|
Taxpayer |
Income range | ||
| Rs. 50 Lakhs to Rs. 1 Crore | Rs. 1 Crore to Rs. 10 Crores |
Exceeding Rs. 10 Crores |
|
| Firm (including LLP) |
Nil |
12% |
12% |
| Local Authority |
Nil |
12% |
12% |
5. In case of unexplained income
In case of income from unexplained sources as referred to in Sections 68, 69, 69A, 69B, 69Cand 69D, the surcharge is levied at the flat rate of 25% of tax on such income without any ceiling limit on income. In other words, surcharge is levied irrespective of the amount of total income. Further, no marginal relief is allowed in respect of surcharge levied on income from unexplained sources. Thus, a person, having income from unexplained sources, shall be liable to pay tax at an effective rate of 77.25% (60% tax rate plus 25% surcharge plus 4% health and education cess).
6. In case of MAT and AMT
The surcharge is levied even if an assessee is liable to pay MAT or AMT. If an assessee is liable to pay MAT or AMT then surcharge is levied on the amount of tax payable on ‘book profit’ or ‘adjusted total income’, as the case may be. Further, ‘book profit’ or ‘adjusted total income’ shall be deemed to be the total income of the assessee to decide the applicability of surcharge.
7. In case of secondary adjustment
If tax is payable under section 92CE(2A) to avoid secondary adjustment in transfer pricing, the rate of surcharge shall be 12%.
8. In case of tax on distributed income
|
Section |
Particulars |
Rate of Surcharge |
| Section 115QA | Tax payable in the event of buy-back of shares |
12% |
| Section 115TA | Income distributed by the securitisation trust to investors |
12% |
| Section 115TD | Tax payable on accreted income |
12% |
- The Finance Act, 2022 has put a cap on the rate of surcharge to 15% in respect of long-term capital gains taxable under Section 112, with effect from Assessment Year 2023-24.
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