Super Tax

Super Tax

Super tax

In this article, we will discuss the new Super tax introduced through Finance Act, 2022 applicable to high-earning persons. The super tax is payable only if their total earning is more than Rs. 150 million in a year. In simple words, we can say that if your annual earning is more than 15 crores then you have no tax liability. The new taxes are levied because high earnings should pay higher taxes.

The following sources of income:

  1. Profit On Debt
  2. Dividend
  3. Capital Gains
  4. Brokerage and Commission
  5. Any other Taxable Income

The rates of taxes are tabled below:

S. No Total Income (in million) Rate of Tax (% of Income)
1 Rs. 150 but not more than Rs. 200 1%
2 Rs. 200  but not more than Rs. 250 2%
3 Rs. 250  but not more than Rs. 300 3%
4 exceeds Rs. 300 4%

However, for the financial year 2022, the persons involved in the business (listed below) partly or wholly the Super tax at the rate of 10% instead of 4% if they earn more than  Rs.300 million. If they’re earning below Rs.300 million then a rate of 10% is not applicable.
Here’s a list of 15 sectors on which 10% super taxes will be imposed:

  1. Airlines
  2. Cigarette & Tobacco
  3. Refining
  4. Sugar And Textiles
  5. Automobiles
  6. Fertilizer
  7. Petroleum & Gas Exploration And Production
  8. Beverages
  9. Iron & Steel
  10. Pharmaceuticals
  11. Cement
  12. LNG Terminal
  13. Chemicals
  14. Oil Marketing
  15. Banking Companies (Applicable for the year 2023 and onwards)

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