Surcharge @12% Levied on Individuals, HUFs, AOPs, BOIs, Artificial
Juridical Persons, Firms, Cooperative Societies and Local Authorities
Having Income Exceeding Rs 1 Crore.
The Union Finance Minister Shri Arun Jaitley in his Budget Speech in Lok
Sabha today proposed no change in the rate of personal Income-tax. He
announced the tax proposals with no change in the rate of tax for
companies in respect of the income earned in the financial year 2015-16,
assessable in the assessment year 2016-17.
However, Finance Minister Shri Arun Jaitley proposed to levy a surcharge
at the rate of 12% on individuals, HUFs, AOPs, BOIs, artificial
juridical persons, firms, cooperative societies and local authorities
having income exceeding Rs 1 crore. Surcharge in the case of domestic
companies having income exceeding Rs 1 crore and upto Rs 10 crore is
proposed to be levied @ 7% and surcharge @ 12% is proposed to be levied
on domestic companies having income exceeding Rs 10 crore.
Shri Jaitley further proposed that in the case of foreign companies the
surcharge will continue to be levied @ 2% if the income exceeds Rs 1
crore and is upto Rs 10 crore, and @ 5% if the income exceeds Rs 10
crore.
It is also proposed to levy a surcharge @ 12% as against current rate of
10% on additional income-tax payable by companies on distribution of
dividends and buyback of shares, or by mutual funds and securitization
trusts on distribution of income.
The education cess on income-tax @ 2% for fulfillment of the commitment
of the Government to provide and finance universalized quality based
education and 1% of additional surcharge called ‘Secondary and Higher
Education Cess’ on tax and surcharge is proposed to be continued for the
financial year 2015-16 for all taxpayers.
Source: PIB News
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