Are we talking about surcharge? You will pay the income tax
but you will be taxed if your income is in high earning
grade.
If you earn up to 50 lakhs, you will be charged 0 rupees
surcharge.
But if you earn more than 50 lakhs, the government says
that your income is good.
If you are in the top 1% income earners of India, you will
be charged 10% surcharge.
But 10% on what? 10% on tax.
Remember that this is tax on tax.
So you will pay 10% on your tax.
Assume that your tax is of 10 lakhs.
So the surcharge you will pay on that will be 10 lakhs plus
10% of 10 lakhs.
It will be 11 lakhs in total.
10 lakhs plus 1 lakh.
Like this.
If you earn 1 crore to 2 crores, you will be charged 15%.
If you earn 2 crores to 5 crores, you will be charged 25%.
And if you earn more than 5 crores, you will be charged 37%
surcharge.
But these two rates do not apply on some income.
What is that income?
That is the income of the share market.
For short term, you hold the shares.
You have done intraday trading.
Or for example, your shares are long term.
There will be a section 112A, you will read it later.
Those are the points.
Or if you get some money from a dividend, then your
surcharge points are applicable on that.
Means 25% and 37% rate will not be applicable.
Maximum rate applicable will be 15% rate.
This is an advantage given by the government to the people
of the share market.
That 25% and 37% surcharge is not applicable on them.
Maximum rate applicable on them, means maximum surcharge on
the share market income will be 15%.
Whether they earn 5 crores or 10 crores.
37%, 25%, none of these surcharges are applicable.
If it is a normal income, if there is some other income
other than the share market, then what is there in that
case?
In that case, these 10, 15, 25, 37, these rates will be
applicable.
Your tax on tax, my dear friend, will be applicable in that
case.
Let's do a question and see.
Sir, this surcharge is also in the case of the company.
Friends, I have not yet covered the points of the company.
These slab rates, I am still on the individuals.
I have not yet covered the points of the company.
These rates of surcharge, these are also the rates of
individuals. I have not yet covered the points of the
company.
I will cover them in a while.
First tell me, is this clear?
Because I want to ask you a question.
Okay? Let's do a question and see, so that your points are
clear.
For example, a person says that
I earn 1 crore per year.
So, first I have to deduct tax on that.
Now, how will we deduct?
For 2.5 lakhs, do a calculation, first deduct tax on 1
crore.
First deduct tax on 1 crore and see, how much will come?
I am also deducting, you also deduct.
Now, increase the speed a little.
12, 500?
According to 5%? 5 to 10? Now, calculate how much will
come? 1 lakh?
Okay? So far, so good.
Next, from 10 lakhs to 1 crore, 90 lakhs.
I have to take 30% of 90 lakhs.
How much will be 30% of 90 lakhs? 27 lakhs.
So, how much will be the total? 28, 12, 500. What is this?
This is just the tax, my friend.
This is just my tax.
I will see the surcharge.
First, I will deduct my tax.
Don't do anything before that, deduct your tax. Once you
deduct your tax, then you have to check, is your income
more than 50 lakhs?
Is your income more than 50 lakhs? If your income is more
than 50 lakhs, then surcharge will be applied on you.
In this case, how much is his income?
How much is his income? 1 crore.
So, what will be the rate of surcharge in this case?
We had 10% from 50 lakhs to 1 crore.
And now, how much is it more than 1 crore?
Between 1 crore and 2 crores, it is 15%. So, add the
surcharge.
How much is the surcharge?
Add the rate, 15%.
See, how much will it be?
I will calculate it on the calculator.
Whom are you calculating 15% of?
So, it will be 4,21,875.
How did you deduct the tax of 28 lakhs?
I have understood that.
It is a simple point.
Surcharge.
Check the rate of surcharge.
Because his income is more than 1 crore.
It is more than 1 crore.
Between 1 crore and 2 crores, it is coming in the bracket.
We had made the points of surcharge.
It is nothing more than 50 lakhs.
From 50 lakhs to 1 crore, it is 10%. If it is more than 1
crore, it is 15%.
So, it is 15%.
15% will be deducted on the tax.
So, how much will be deducted? 4,21,875.
How much will be the total tax? If you add 28,12,500, it
will be 32 lakhs.
34,000.
375 is the tax amount.
Is it clear?
Is this point clear?
Check it.
This is the point.
28,12,500 is the tax.
Surcharge is deducted on it.
Surcharge is deducted on tax.
This is the work of surcharge.
Basically, tax is on tax.
It increases the amount of tax.
This is the point.
Surcharge.
This is the individual category of surcharge.
In your syllabus, in your content, we will discuss about
companies.
Rate of taxes of companies are different.
Surcharge on companies is also different.
First, understand one concept.
If you understand one concept, all the concepts will be
clear.
First, you understood the concept of surcharge.
You understood the concept of surcharge.
You understood the use of it.
You have to pay extra tax on it.
Basically, you are in a high earning group.
You have a high income.
What does the government tell you?
You live in such a country.
You are basically a person who earns a lot of money.
And the country needs taxes to develop.
And you earn a lot of money.
So, you contribute a little more.
You contribute a little extra.
This is a simple point.
You contribute a little extra so that our country can
develop easily. The low earning group, we have already
given them a rebate.
We have already given them a rebate and forgiven them. But
you are earning a little more.
We are requesting you to add a little surcharge on the tax
you are paying.
If you add a surcharge, it will benefit the country.
It will benefit you as well.
This was the point of surcharge.
Tax is done. Surcharge is done.
Now, the third and last thing.
Sir, what all is added?
A lot of things are added.
That is why I am telling you that income tax is not as easy
as you think.
You will deduct the amount of tax.
After that, you will see whether the surcharge is applied
on you or not.
The surcharge will be either on you or not.
So, you will get a total figure.
Finally, you have to add health and education cess.
Health and education cess.
What is this, sir?
This is the rate of 4%.
4% depends on this.
This will be your final total tax payable. This will be
your total tax payable.
Please forgive me for my handwriting.
But, this is the thing.
Till now, what have we learnt?
We have learnt to calculate tax.
We have seen the surcharge.
Total both of them.
On top of that, a health and education cess of 4% is
applied.
Now, what is this?
Health and education cess.
Basically, the government collects money from you in the
name of health and education. This money goes to a fund
where the government spends on hospitals, education, and
health care.
Health and education cess is 4% on this amount.
You will get tax plus surcharge on this.
After this, your tax will be paid. For example, we did the
previous question.
Till now, all the taxes we have collected, we have done
only this calculation.
We have not added this thing yet.
So, whenever you collect a tax, it is a simple point.
If you see if there is a surcharge or not. If there is no
surcharge, the tax amount will be health and education cess.
Add this and your total tax will be paid. So, add health
and education cess on tax plus surcharge.
Like for example, let's take the last question, there was a
tax of 28,12,500.
What was the surcharge?
Tell me how much surcharge was there?
There was a surcharge of 15%.
Let's add 15% of 28,12,500.
So it came out to be 421,875.
This was the answer.
And take out the total, how much was it?
If you add 28,12,500, it came out to be 32,34,375.
Now in this, you have to add the health and education tax
of 4%.
And the final figure that comes out, this is your total tax
payable.
Tax, if the surcharge is not applied on you, then do the
health and education tax.
If the surcharge is applied, then tax plus surcharge, then
the health and education tax will be applied.
This is a simple point.
This is how your tax is calculated.
I have explained this to you in the old regime, in the
individual category.
Because once you understand the mindset of an individual,
how does he pay the tax?
Companies are nothing in front of this.
Nothing.
There is only one rate.
There is no issue of slab lab.
This is the point of an individual.
We have learnt how to calculate tax.
We have learnt how to calculate surcharge.
What was surcharge?
Basically, I am troubling the high income group.
What am I troubling basically?
I am telling them that you earn a little more.
Give me a little extra tax.
I am taking extra tax from them.
We have seen rebate.
What is rebate?
If you have a total income up to 5 lakhs, then the tax that
will be paid on it, that much tax you will be forgiven.
But provided maximum 12,500 should be there.
How did 12,500 come?
Sir, the limit of 2.5 lakhs to 5 lakhs is 5%.
And then we have read this.
Health and education says.
I will stop the topic here.
In the next lecture, we will clear some more concepts.
We will read the concept of marginal relief.
It is a very good concept.
And I will tell you the rates of the company.
And we will discuss the rates of the new regime.
And then we will finish this topic.
Okay, sir?
Let's go.
Bye.