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Mihir

Mihir Tanna  |1018 Answers  |Ask -

Tax Expert - Answered on Dec 16, 2023

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Asked by Anonymous - Dec 14, 2023Hindi
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Hi Mihir, It seems my total income will go marginally above 50L due to additional bonus that I will get from my employer this year. I was checking in income tax calculator that going above 50 lacs has huge impact on tax because there will be additional surcharge of 10% on total tax (not on delta) income. If you see this, net tax on 51 L minus net tax on 50 L is even more than 1 lac to my surprise. If this is true, do you have any suggestion to keep income within 50L..like add more money in meal card or any other suggestion?

Ans: Marginal relief is available from surcharge in case where net income exceeds Rs. 50 lakh but doesn't exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.

So for e.g. if your income is 50 lacs, tax liability will be Rs.13,12,500 plus cess and no sucharge. If income is 51 lacs, tax liability will be Rs.13,42,500 plus surcharge of 1,34,250 so total of Rs.14,76,250 plus cess. However, you will be eligible for marginal relief of Rs.64,250 (Additional income Rs.100000 and additional tax is 164250). So surcharge will reduce to Rs.70000.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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