Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
»
1-min read

Tax for Super Rich in India Still Lower Than China & US, Says Finance Ministry

Nirmala Sitharaman in the Budget for 2019-20 presented proposed to increase surcharge from 15 per cent to 25 per cent on taxable income between Rs 2-5 crore and from 15 per cent to 37 per cent for income above Rs 5 crore.

News18.com

Updated:July 8, 2019, 8:44 AM IST
facebookTwitterskypewhatsapp
Tax for Super Rich in India Still Lower Than China & US, Says Finance Ministry
Finance Minister Nirmala Sitharaman with Minister of State for Finance Anurag Thakur outside the Ministry of Finance in New Delhi. (Image: AFP)
Loading...

New Delhi: Justifying raising of tax incidence on super rich, the finance ministry said the highest tax rate in India was still lower than many countries, including the US and China, and it was a worldwide phenomenon to ask the super rich to pay extra tax.

Revenue Secretary Ajay Bhushan Pandey sought to justify the Budget proposal to increase surcharge on super-rich saying that the highest tax individual tax rate is 45 per cent in China and South Africa, and 50.3 per cent in the US.

Finance Minister Nirmala Sitharaman in the Budget for 2019-20 presented last week proposed to increase surcharge from 15 per cent to 25 per cent on taxable income between Rs 2-5 crore and from 15 per cent to 37 per cent for income above Rs 5 crore.

Following the increase in surcharge, the effective income tax rate for individuals with taxable income of Rs 2-5 crore will go up from 35.88 per cent to 39 per cent and for those above Rs 5 crore it would go up to 42.7 per cent.

Pandey said before the increase in surcharge the highest tax rate in India was 35.88 per cent. This was against 45 per cent in the UK, 45.9 per cent in Japan, 54 per cent in Canada, and 66 per cent in France.

"In India, we were at 35 per cent (the highest personal I-T rate). So, even for the sake of equity and on the basis of capacity to pay, people who are earning Rs 10 lakh and people who are earning Rs 10 crore, should they be paying the same percentage of tax.

"Definitely some more money should be retained by people who are earning Rs 11-14 lakh than the people earning in crores. Therefore, people who earn more should pay higher tax," he added.

Observing that taxpayers play a major role in nation building, Sitharaman, while presenting the Budget, said in view of rising income levels, those in the highest income brackets, need to contribute more to the nation's development.

"I, therefore, propose to enhance surcharge on individuals having taxable income from Rs 2 crore to 5 crore and Rs 5 crore and above so that effective tax rates for these two categories will increase by around 3 per cent and 7 per cent respectively," she said.

Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 92.40 1.37
HDFC Bank 2,260.45 -1.60
Kotak Mahindra 1,462.40 0.56
HDFC 2,137.35 -2.27
Reliance 1,286.95 0.50
Company Price Change %Gain
Yes Bank 92.50 1.48
HDFC Bank 2,261.95 -1.53
Bajaj Finance 3,230.00 -0.57
SpiceJet 145.85 1.96
Kotak Mahindra 1,479.20 1.76
Top Gainers
Company Price Change %Gain
Power Grid Corp 208.50 2.16
UPL 650.85 1.88
Infosys 798.25 1.77
Yes Bank 92.45 1.43
Titan Company 1,101.30 1.45
Company Price Change %Gain
Power Grid Corp 208.40 2.16
Infosys 798.60 1.71
Yes Bank 92.50 1.48
ITC 267.95 1.34
Hero Motocorp 2,435.20 1.26
Top Losers
Company Price Change %Gain
HDFC 2,137.45 -2.26
Indiabulls Hsg 641.45 -2.20
Zee Entertain 357.30 -1.85
HDFC Bank 2,260.45 -1.60
Bajaj Auto 2,522.30 -1.58
Company Price Change %Gain
HDFC 2,138.50 -2.20
HDFC Bank 2,261.95 -1.53
Bajaj Auto 2,524.20 -1.46
Bharti Airtel 338.40 -1.27
Maruti Suzuki 5,895.45 -0.28

Live TV

Loading...
Countdown To Elections Results
To Assembly Elections 2018 Results