The Income Tax Act of 1961 states that an individual who earns more than the 30% income tax band is subject to a surcharge on their income tax. A surcharge is an extra sum that taxpayers must pay on their income taxes. The goal of the surcharge is to encourage wealthy individuals to pay more taxes to the government rather than those who are otherwise impoverished.
In general, surcharge rates fall between 2% and 37%.
Marginal relief, as defined by the terms of the Income-tax Act, is a relief from paying a surcharge that is provided to both people and businesses. For many people and businesses, the burden of surcharge is lessened by marginal relief.
