The 25% surcharge applies to total income between ₹2Cr and ₹5Cr (old regime) or above ₹2Cr capped at 25% (new regime, post-Budget 2023). For high-income earners crossing ₹2Cr, this is a sharp jump from the 15% band - the calculator shows exact tax impact including marginal relief and 4% cess.
When to use this
Use for: senior executives / founders with total income above ₹2Cr, capital-gains-heavy years where you've sold property / equity / business, business owners declaring high pass-through income, planning regime choice (new regime caps surcharge at 25% even above ₹5Cr, which can save money over old regime's 37%).
Frequently Asked Questions
Does the new tax regime cap surcharge at 25%?
Yes - Budget 2023 capped the surcharge under the new regime at 25% for all income above ₹2Cr (vs old regime which goes up to 37% at ₹5Cr+). For very-high-income earners (>₹5Cr), the new regime saves significantly on surcharge even though base slab rates are similar.
Is the marginal relief threshold at ₹2Cr exactly?
Yes - the surcharge step happens precisely at ₹2,00,00,001 income. Marginal relief means the surcharge can't make your net tax higher than if you'd earned exactly ₹2Cr. For incomes ₹2.0L to ₹2.5L over ₹2Cr, the relief is meaningful; above that, the regular surcharge applies.
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