Surcharge & Cess Calculator for India (Old vs New Regime)

This powerful Surcharge & Cess Calculator helps you compute surcharge on income tax and health & education cess with complete accuracy. It follows official Indian surcharge slabs, including the restricted 25% surcharge under the New Tax Regime, making tax computation fast and compliant.

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Surcharge & Cess Calculator — Toolsuite.in

Calculate surcharge & cess on income tax. Choose Old or New tax regime — new regime capped at 25% for the top slab.

Enter income tax (computed before surcharge & cess). Or check Auto surcharge and supply Taxable Income.
Note: For certain capital-gain incomes, or incomes taxed under special sections, surcharge rules can differ. Validate with official CBDT notifications when in doubt.

Understanding Surcharge Under the Income Tax Act, 1961

Surcharge is an additional tax levied on the income tax amount (not on income) when a taxpayer’s taxable income crosses specified thresholds. It is governed by the Finance Act, read with Section 2(11) and relevant annual Budget notifications issued by the CBDT.

In India, surcharge applies differently depending on:

  • Your taxable income, and
  • Whether you opt for the Old Tax Regime or New Tax Regime.

The highest surcharge under the Old Regime goes up to 37%, whereas the New Regime caps surcharge at a maximum of 25%, as per the changes introduced in Budget 2023.

Surcharge Rates in India — Old Regime vs New Regime (FY 2024–25 / AY 2025–26)

Taxable Income (₹)Surcharge – Old RegimeSurcharge – New Regime
Up to 50 lakh0%0%
50 lakh – 1 crore10%10%
1 crore – 2 crore15%15%
2 crore – 5 crore25%25%
Above 5 crore37%25% (capped)

Why surcharge differs?

  • Under the Old Regime, surcharge increases progressively with income.
  • Under the New Regime, surcharge is capped at 25% even for income above ₹5 crore.
    This cap was introduced to reduce the effective tax rate on high-income taxpayers opting for the new regime.

Health & Education Cess (HEC)

Cess applies uniformly under both regimes.

  • Rate: 4%
  • Charged on: (Tax + Surcharge)

This remains unchanged irrespective of taxable income or regime.

How to Use This Surcharge & Cess Calculator

This tool is designed for tax professionals, CAs, CFOs, and individuals calculating surcharge quickly and accurately.

  1. Enter your Income Tax amount
    Use the tax amount calculated before surcharge & cess.
  2. Choose Old Regime or New Regime
    The surcharge rate will apply as per the selected regime.
  3. Enable “Auto Surcharge by Taxable Income” (recommended)
    Enter your taxable income, and the tool will automatically detect the correct surcharge slab.
  4. Review editable surcharge & cess fields
    You can override surcharge % or cess % if required for special cases (capital gains, section 111A, 112A, etc.).
  5. Click Compute
    The tool will show:
    • Surcharge applied
    • Surcharge amount
    • Cess amount
    • Total tax payable

You can also use Copy to export results instantly.

Legal Basis & CBDT References

The surcharge structure is derived from:

  • Annual Finance Acts
  • CBDT circulars and instructions
  • Income-tax rules for special income categories (capital gains, lottery income, foreign companies, etc.)

Special Note:
For certain capital gains (Sections 111A, 112, 112A, 115AD), surcharge is capped at 15%, irrespective of regime.

Surcharge & Cess Calculator for Indian taxpayers — updated with the 25% surcharge cap under the new tax regime.
“Online Surcharge & Cess Calculator for Indian income tax.”

FAQs — Surcharge & Cess Calculator India

1. What is surcharge under the income tax Act?

Surcharge is an additional tax levied on the income tax amount when taxable income exceeds ₹50 lakh. It varies by income bracket and tax regime.

2. Is surcharge different in the Old and New Tax Regimes?

Yes. Under the New Regime, the maximum surcharge is 25%, even for income above ₹5 crore. Under the Old Regime, surcharge can go up to 37%.

3. Does cess apply after surcharge?

Yes. Health & Education Cess @ 4% is calculated on Tax + Surcharge.

4. Is surcharge applicable on capital gains?

For specific capital gains under Sections 111A, 112, 112A, surcharge is capped at 15%, irrespective of the regime.

5. Is this calculator accurate for FY 2024–25?

Yes. It uses surcharge and cess rules applicable for AY 2025–26, including the surcharge cap under the new regime.

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Short Disclaimer

This calculator provides an estimate based on prevailing tax rules. Actual surcharge and cess may vary depending on exemptions, special income categories, or CBDT notifications. Please consult a qualified tax professional for final computation.