As on December 2021, individuals whose annual taxable income is between ₹50 lakhs and 1 crore, have to pay ________ surcharge on income tax.
- AOption (a)
10%
- BOption (b)
5%
- COption (c)
20%
- DOption (d)
30%
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Correct answer
10%
Why this answer is correct
The correct answer is 10%.
Key Points
- The surcharge is levied on the income tax amount if the total income crosses a certain level.
- Given below is the table showing surcharges that will be levied.
| Taxable Income | Surcharge (%) |
|---|---|
| Income above Rs 50 lakh but below Rs 1 crore | 10 |
| Income above Rs 1 crore but below Rs 2 crore | 15 |
| Income above Rs 2 crore but below 5 crore | 25 |
| Income above Rs 5 crore | 37 |
Additional Information
- Income Tax-
- Income tax is a key source of government funding.
- Income tax in India is in the Union List of the Seventh Schedule to the Constitution of India, empowering the central government to tax non-agricultural income.
- Income-tax law consists of the 1961 act, Income Tax Rules 1962, Notifications and Circulars issued by the Central Board of Direct Taxes (CBDT), annual Finance Acts, and judicial pronouncements by the Supreme and High courts.
- The government taxes the certain income of individuals, Hindu Undivided Families (HUF's), companies, firms, LLPs, associations, bodies, local authorities, and any other juridical person.
- The CBDT administers the Income Tax Department, which is part of the Ministry of Finance's Department of Revenue.