Taxing the 'Super rich'; income over 10cr to pay 35% tax
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The Cabinet is likely to put on table a proposal of imposing a higher tax rate of 35 per cent on the 'super rich' — those earning more than Rs 10 crore yearly — as amendments in the Direct Taxes Code (DTC) Bill, 2010, that is likely to be discussed in Parliament today.
The move is seen as government effort to raise revenues to meet its commitment to rating agencies and markets to bring down fiscal deficit.
If the government gets DTC approved in Parliament, it will replace age-old Income-Tax Act, which dates back to 1961.