Budget 2013: Rich taxpayers to pay 10 percent surcharge

Thu Feb 28, 2013 7:00pm IST

A man walks past a car displayed at a Mercedes-Benz showroom in Mumbai in this November 25, 2008 file photo. REUTERS/Arko Datta/Files

A man walks past a car displayed at a Mercedes-Benz showroom in Mumbai in this November 25, 2008 file photo.

Credit: Reuters/Arko Datta/Files

A statue of Ganesh, the deity of prosperity, is carried in a taxi to a place of worship on the first day of the ten-day-long Ganesh Chaturthi festival in Mumbai August 29, 2014. REUTERS/Danish Siddiqui

Ganesh Chaturthi Festival

During Ganesh Chaturthi idols will be taken through the streets in a procession accompanied by dancing and singing, and will be immersed in a river or the sea in accordance with Hindu faith.  Slideshow 

REUTERS - Finance Minister P. Chidambaram introduced a surcharge of 10 percent for one year on taxpayers with an annual taxable income of more than 1 crore (10 million) rupees, in a bid to raise more revenues for India's annual budget on Thursday.

In his speech, Chidambaram said only 42,800 persons in the country admitted to taxable income exceeding 10 million rupees per year.

"I am confident that when I ask the relatively prosperous to bear a small burden for just one year, just one year, they will do so cheerfully," the Harvard-educated politician said in parliament.

"I believe there is a little bit of the spirit of Azim Premji in every affluent taxpayer," Chidambaram said, referring to the chairman of Wipro who has advocated higher taxes on the well heeled in India.

The surcharge, to be imposed only for the next fiscal year, would apply to individuals, firms and entities.

India has just 35 million taxpayers -- about 3 percent of the population. Only 1.5 million of them declare annual earnings of more than a million rupees, according to finance ministry data.

At present, the top income tax rate is 30 percent, which applies to earnings above 1 million rupees a year.

Chidambaram gave a notional tax break to millions of taxpayers on Thursday, proposing a tax credit of 2,000 rupees in the annual budget to people with total income up to 5,00,000 rupees.

(Click here for story on tax credit of 2000 rupees for taxpayers)

(Reporting by India Online)

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Comments (1)
amma wrote:
If we bring the hidden black money from abroad and from the corrupt politicians it will be enough to run the country for few decades.

Feb 28, 2013 7:05pm IST  --  Report as abuse
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