Govt may put down super-rich tax proposal in Cabinet meeting on DTC Bill: Report

Govt may put down super-rich tax proposal in Cabinet meeting
The government may put down the controversial proposal of super-rich tax, a tax to be levied on people earning over Rs 10 crore at the rate of 35 per cent, at a Cabinet meeting on Direct Tax Code (DTC) Bill this month, according to a Business Standard report.

The report said that super-rich tax proposal would be kept on backburner till at least the general elections.

The DTC Bill which will replace the 50-year-old legislation has been awaiting the Cabinet approval from last four years. In the case of wealth tax, the government had the plan to increase the threshold to Rs 50 crore, from Rs 15 lakh currently, with the levy pegged at 0.25 per cent.

Experts believe that impact of higher levying on those with an income of over Rs 10 crore will be marginal, given the fact that those earning Rs 1 crore or more have been slapped with a surcharge that makes the effective tax rate 33 per cent.

Dion Global Solutions Ltd.

Story first published: Wednesday, November 20, 2013, 9:11 [IST]
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