A surcharge on income tax is an additional tax that is levied on taxpayers earning a higher income beyond a certain limit set by the government. It is calculated on the tax before adding a cess to it and is levied to put a high tax burden on rich people. The surcharge is added to the tax payable and not on the income generated. The surcharge rate varies with the income bracket and is different for individuals and corporates. In India, surcharge is levied if an individual’s income is more than Rs. 50 lakh. The surcharge amount is calculated on the tax before adding a cess to it. The surcharge calculation is different for different incomes and is calculated on the basic tax. The surcharge is a part of the Consolidated Fund of India and can be utilized for any purpose by the government.