Super tax on high earners
An extra tax on high incomes, charged on top of normal tax. Super tax is left out when the minimum tax comparison is made.
Where it applies
- Banking companies with income above Rs 150 million
- Persons whose income is computed under Part I of the Fifth Schedule (petroleum) above Rs 150 million
- Fertilizer sellers above Rs 150 million
- All other persons above Rs 500 million
How it works, step by step
The section of law behind each step is shown beside it.
- 1Work out income for s.4Cs.4C(2)
Taxable income plus FTR income and certain other amounts, as s.4C(2) defines it.
- 2Apply the rateDiv IIB
The rate applies to the whole income once the threshold is crossed.
- 3Pay with advance taxs.147
Super tax is included in quarterly advance tax under s.147.
Rates and rules
| Case | Rate / rule | Law |
|---|---|---|
| Banking company, above Rs 150 million | 10% of income | Div IIB(1) |
| Petroleum (Fifth Schedule Part I), above Rs 150 million | 10% of income | Div IIB(2) |
| Fertilizer, above Rs 150 million | 10% of income | Div IIB(3) |
| Other persons, above Rs 500 million | 8% of income | Div IIB(4) |
Worked example
A manufacturing company with s.4C income of Rs 600 million pays super tax of 8%, which is Rs 48 million, in addition to corporate tax.
Points to watch
- The table was replaced by the Finance Act 2026. Earlier years used a graduated table running from 1% to 10%.