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:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
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
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Wilful Negligence?

Wilful Negligence?

SEBI piles pressure on Sahara to sell overseas hotels  Full Article 

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

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