There has been major changes with regard to surcharge, education cess, SHEC, after approval of the finance (No. 2) ACT, 2009. I have received so many queries aboutsurcharge and education cess rates and applicability for A.Y. 2010-2011. I classified this article so that everyone can understand in a very simple manner.
All rates applicable w.e.f. 1-4-2009 in my view, although finance (No.2) Act approval date is 19th, Aug 2009.
Surcharge on Income Tax: -
Surcharge on income-tax for the assessment years 2009-2010 and 2010-11 will be as follows : -
| A.Y. 2009-10 | A.Y. 2010-11 | |
| Individual/HUF/AOP/BOI ifnet income does not exceed Rs. 10 Lakh | NIL | NIL |
| Individual/HUF/AOP/BOI ifnet income exceeds Rs. 10 Lakh | 10% | NIL |
| Artificial Juridical Person | 10% | NIL |
| Co-operative society, local authority | NIL | NIL |
| Firm if net income does not exceed Rs. 1 Crore | NIL | NIL |
| Firm if net income exceed Rs 1 Crore | 10% | NIL |
| Domestic company if net income doews not exceed Rs. 1 Crore | NIL | NIL |
| Domestic company if net income exceeds Rs. 1 Crore | 10% | 10% |
| Foreign Company if net incomedoes not exceed Rs. 1 Crore | NIL | NIL |
| Foreign Company if net incomeexceeds Rs. 1 Crore | 2.5% | 2.5% |
Surcharge, Education Cess in the case of TDS – For the F.Y. 2009-10, A.Y. 2010-11
| Nature of Payment | Whether surcharge isapplicable | Whether education cess @ 2% and SHEC @ 1% isapplicable |
| Salary to a Resident or Non – Resident | NO | Yes |
| Payment other than salary to a resident | NO | NO |
| Payment other than salary to a non-resident not being foreign company | NO | YES |
| Payment other than salary to a foreign company (payment or credit subject to TDS does not exceed Rs. 1 Crore | NO | Yes |
| Payment other than salary to a foreign company (payment or credit subject to TDS exceeds Rs. 1 Crore) | Yes @ 2.5 of TDS | Yes |
