Glossary term
Surcharge
An extra tax above ₹50 lakh income — 10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr (Old Regime can go to 37%).
Surcharge is an additional tax applied on the income tax payable for high-income individuals. New Regime surcharge: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore. Old Regime can additionally reach 37% above ₹5 crore.
Surcharge applies before cess. Marginal-relief provisions ensure that crossing a threshold by a small amount doesn't increase total tax by more than the income above the threshold.