Surcharge
An extra tax charged on top of income tax for people with very high incomes.
A surcharge is a tax on your tax, for high earners only. It starts above 50 lakh rupees of income and rises in steps. Most people never pay it. Read more in old vs new tax regime.
Key facts
- 50 lakh to 1 crore
- 10%
- 1 crore to 2 crore
- 15%
- 2 crore to 5 crore
- 25%
- Above 5 crore
- 25% new regime, 37% old regimeCapped at 15% on some capital gains and dividends. Check the current rates.
Questions people ask
What is surcharge in income tax?
A surcharge is an extra charge on your income tax, applied only above high income levels. It's worked out as a percentage of your tax, not your income, and then the 4% cess is added on top.
What are the surcharge rates?
10% for income between 50 lakh and 1 crore rupees, 15% between 1 and 2 crore, 25% between 2 and 5 crore, and above 5 crore 25% under the new regime or 37% under the old one, per the Income Tax Department. Check the current rates.
Does surcharge apply to capital gains?
On some capital gains and dividends, the surcharge is capped at 15%, per the Income Tax Department, so the higher rates don't apply to them.
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