Surcharge
Additional tax on tax for high-income earners — 10% above ₹50L, 15% above ₹1cr, 25% above ₹2cr, 37% above ₹5cr (old regime only).
Definition
Surcharge is an extra percentage charged on the income tax (not income). Slabs: 10% if taxable income exceeds ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and 37% above ₹5 crore (old regime; new regime caps at 25%).
Marginal relief applies just above each surcharge threshold so that the additional income doesn't trigger a tax larger than the income gain itself. For someone with ₹49.5L → ₹50.5L taxable income, marginal relief kicks in to soften the surcharge cliff.
Example
₹70L taxable in old regime → income tax ~₹19L → surcharge at 10% = ₹1.9L → tax + surcharge = ₹20.9L → 4% cess = ₹21.74L total.
Calculators that use this
Income Tax India
Calculate India income tax under both Old and New regimes side-by-side. See which regime saves more, with 87A rebate, cess, and standard deduction applied.
Open calculatorCapital Gains
Calculate STCG and LTCG on equity, debt MFs, property, and gold using post-July 2024 rules. Auto-classifies short vs long term by holding period.
Open calculatorRelated terms
More Tax terms
See all 30 glossary terms or read our Methodology for how we source these definitions.