A company earns ₹20 lakh of income chargeable at the special rate for transfer of carbon credits in tax year 2026–27. What is the income-tax on that income before surcharge and cess?

Section 194(1) of the Income-tax Act, 2025 (Table, Sl. No. 3) taxes income by way of transfer of carbon credits at 10%, with no deduction for any expenditure or allowance, so the tax on ₹20 lakh is ₹2 lakh before surcharge and cess. The figures of ₹4 lakh and ₹6 lakh correspond to rates of 20% and 30%, which do not apply to this income, and the income is not exempt.