Withdraw Surcharge@10% for total income between Rs.50 lakhs to Rs. 1 crore -Budget 2017-18 Suggestions

By | March 2, 2017
(Last Updated On: March 2, 2017)

Paragraph A of Part III to the First Schedule – Proposed Surcharge @ 10% for income exceeding Rs 50 lakhs – Removal of surcharge to ensure parity in effective tax rates vis-à-vis small and medium companies

Surcharge @ 10% is proposed in cases where total income of an individual/HUF/AOP/BOI exceeds Rs.50 lakhs but do not exceed Rs. 1 crore. Surcharge of 15% would continue to be applicable where the total income of an individual/HUF/AOP/BOI exceeds Rs 1 crore. [Read Surcharge on income above Rs 50 lakhs w.e.f AY 2018-19 ]

The levy of such surcharge would result in inequity in the effective rate of tax (i.e., more than 30%) for individual/HUF/AOP/BOI assessees with total income exceeding Rs.50 lakhs vis-cl-vis the rate of 25% proposed for small and medium companies. The inequity would arise not only vis-cl-vis salaried assessees but individuals/HUFs engaged in small businesses would also have to bear the brunt of surcharge which may go against the present Government’s aim of promoting ease of doing business.


It is suggested that the proposed surcharge@10% for total income between Rs.50 lakhs to Rs. 1 crore be withdrawn to ensure equity in effective rate of tax vis-a-vis the proposed rate for small and medium companies.

Source- ICAI Post-Budget Memoranda-2017

Budget 2017-18 Suggestion- Turnover Limit needs to be increased for TDS section 194A/ 194H/ 194I & 194J

Transfer of unquoted shares – double taxation for seller and buyer -Budget 2017-18 Suggestion

Capital Gain – joint development agreement -Budget 2017-18 Suggestions

Gift u/s 56(2)(x) not treated as Income u/s 2(24)? Budget 2017-18 Suggestions

Transfer of carbon credits not treated as Income u/s 2(24)? Budget 2017-18 Suggestions

Clear confusion of TCS on Sale of Jewellery w.e.f 01.04.2017 – Budget 2017-18 Suggestions

Exclude pooling vehicles like Mutual funds, AIP’s from section 115BBDA- Dividend Taxation– Budget 2017-18 Suggestions

Rs 2 Lakh Interest deduction for house property held as stock-in-trade by builders? – Budget 2017-18 Suggestions

Partly Cash Expenditure on Asset – entire amount Disallowed ? Budget 2017-18 Suggestions

Reduce Tax to @ 25% on LLP, Firms, Firms Coverted into Companies, New companies – Budget 2017-18 Suggestions

Related Post on Budget 2017-18

Budget Speech 2017-18 -Download /Print

Finance Bill 2017 -Download /Print -Budget 2017-18

Memorandum Explaining Provisions in Finance Bill 2017

Updates  on Union Budget 2017-18

Books on Budget 2017-18

Taxmann’s Budget 2017-18 -Book

Budget 2017-18- Notifications on Central Excise , Customs and Service tax – New Book

Ajit Prakashan’s Union Budget 2017-18 -New Book

BDP’s Customs Law Manual (2017-18 Budget Editon with CD) -New Book



Leave a Reply

Your email address will not be published.