NO.4
A domestic company has a Total Income of INR
10,10,00,000. The applicable marginal relief would
be?
NIL
INR 10,00,000
INR 300,000
INR 836,000
Answers
Answer:
A domestic company has a Total Income of INR
10,10,00,000. The applicable marginal relief would
be....
Explanation:
INR 300,000
A domestic company has a Total Income of INR
10,10,00,000. The applicable marginal relief would
be NIL
•Income-tax Act, 1961, according to this Act a marginal relief is given to those companies or individuals whose taxable income is beyond the threshold limit after which surcharge is payable, but the net income above the threshold is less than the surcharge.
•if a company and his total taxable income is ₹51 lakh in a financial year, he will be required to pay a 10% surcharge applicable on taxable income between ₹50 lakh and ₹1 crore. After taking care of all the deductions, he will end up paying ₹13,42,500 as tax and the surcharge would sum it up to ₹1,34,250. • If the surcharge amount is more than the difference between his taxable income and the margin which puts him in the higher tax slab, which is ₹1 lakh ( ₹51 lakh minus ₹50 lakh).
• To adjust the surcharge is subject to marginal relief. In that case, the net income over ₹50 lakh is ₹70,000 ( ₹1 lakh which is the income crossing the ₹50 lakh mark, less 30% income tax).
• Domestic companies with a net income of more than Rs.1 crore but less than Rs.10 crores have a 7% surcharge rate.
• Domestic companies with net income of more than Rs. 10 crores then the surcharge rate is 12%.