Surcharge

Surcharge is an additional tax levied on top of your income tax liability when your total income crosses certain thresholds under the Income Tax Act 2025. The surcharge rates are graduated: 4% surcharge applies when total income exceeds ₹50 lakh, 10% when it exceeds ₹1 crore, 15% when it exceeds ₹2 crore, 25% when it exceeds ₹5 crore, and 37% when it exceeds ₹10 crore. The surcharge is calculated on the income tax before applying any rebate under Section 87A. Marginal relief is available so that the surcharge does not increase your total tax liability by more than the income that exceeds the threshold. Surcharge rates are the same under both the new and old regimes. The surcharge is distinct from the Health and Education Cess and is levied as a percentage of the tax computed.