How the 10 per cent surcharge on the super rich will work?

Posted By:

How the 10 per cent surcharge on the super rich will work?
After months of hinting at taxing the super rich, P Chidambaram has kept his word. In today's Union Budget he has levied a surcharge of 10 per cent on the "super rich".

So, individuals now earning an income of over Rs 1 crore would be charged 10 per cent surcharge. So, if the net tax payable would be Rs 25 lakhs for these super rich individuals in assessment year 2013-2014, an additional tax of Rs 2.5 lakhs would be payable as surcharge from the assessment year 2014-2015. So, if earlier you were paying Rs 25 lakhs, now you would need to pay Rs 27.5 lakhs.

Just simplifying it, you need to pay 10 per cent extra, for assessment year 2014-2015. However, the Finance Minister emphasised that this would be only for one year.

"When I need to raise resources, who can I go to except those who are well placed in society. Only 42,800 persons in the whole country who admitted to a taxable income of exceeding Rs 1 crore per year.

"I believe there is a little bit of spirit of Azim Premji in every affluent taxpayers and I am confident when I ask relatively affluent taxpayers to bear a small burden for one year they will do so cheerfully," he said, adding the tax proposal will be only for one year.

Read more about: union budget 2013, super rich
Story first published: Thursday, February 28, 2013, 16:21 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?