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

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)

FILED UNDER:

Politics

REUTERS SHOWCASE

Fund Raising

Fund Raising

Flipkart raises $700 million in fresh funding.   Full Article 

Reforms Push

Reforms Push

Modi may order insurance, coal reforms if vote delayed - officials.  Full Article 

Reuters Exclusive

Reuters Exclusive

India looks to sway Americans with nuclear power insurance plan  Full Article 

To Boost Growth

To Boost Growth

Crank up public spending to revive growth - chief economic adviser.   Full Article 

Bold Steps

Bold Steps

SpiceJet rescue plan marks bold bet on Indian aviation recovery.   Full Article 

New Airline

New Airline

Tata, Singapore Air venture Vistara to take off on Jan 9.  Full Article 

Online Sales

Online Sales

Knock knock. Who's there? Amazon's best-selling holiday author.  Full Article 

Hacking Attack

Hacking Attack

N.Korea says did not hack Sony, wants joint probe with U.S.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage