Chidambaram proposes 10 percent surcharge on super-rich
Finance Minister P. Chidambaram proposed a surcharge of 10 percent on persons whose taxable income exceed Rs. one crore per year.
This will apply to individuals, HUFs, firms and entities with similar tax status.
Presenting the Union Budget in the Lok Sabha today, Chidambaram said that he also proposes to increase the surcharge from 5 percent to 10 percent on domestic companies whose taxable income exceeds Rs.10 crore per year.
In the case of foreign companies, the surcharge will increase from 2 percent to 5 percent.
In all other cases, such as dividend distribution tax or tax on distributed income, the current surcharge of 5 percent is being increased to 10 per cent. The additional surcharges will be imposed for only one year, i.e., financial year 2013-14. The education cess for all taxpayers shall continue at 3 percent.
Chidambaram said that he expects the relatively prosperous to bear a small burden for one year. (ANI)