Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: list of goods taxed at 4% :: due date for vat payment :: empanelment :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: VAT Audit :: ACCOUNTING STANDARD :: cpt :: articles on VAT and GST in India
« Direct Tax »
 Mumbai zone direct tax collection flat in H1 FY17
 CBDT issues final rules for taxing share buy back by companies
 CBDT issues final rules for taxing share-buyback
 The direct tax collections up to September, 2016 are at Rs. 3.27 lakh crore which is 8.95% more than the net collections for the corresponding period last year.
 IDS is tremendous success: CBDT chief Rani Singh Nair
 Submit monthly data of appeals disposed of: CBDT to officers
 Direct tax mop-up jumps 9 per cent in H1, indirect tax up 26 per cent
 Income tax department slams notice on five Mumbai-based exporters over offshore accounts
 Redress TDS mismatch grievance of taxpayers: CBDT
 Tax department changes rule for accommodating deductions for deferred spectrum payment
 Tax dept renotifies income computation, disclosure standards

Super rich should brace for higher tax
February, 29th 2016

Super rich taxpayers hoping for Achhe Dinn from this year's Budget are likely to be disappointed.

Last year's Budget had removed wealth tax but enhanced the surcharge on tax from 10% to 12% for those earning more than Rs 1 crore a year. This year, the Economic Survey has already hinted that the rich are not taxed enough and those with fat incomes should brace for a higher tax.

TAX UP, BUT MORE FOR SUPER RICH Taxing the rich is low-hanging fruit because such measures face little political opposition. The 10% surcharge on income of over Rs1 crore was introduced as a one-time measure in 2013.

In his Budget speech, P Chidambaram had stressed on this when he said, "I believe there is a little bit of the spirit of Mr Azim Premji in every affluent taxpayer. I am confident that when I ask the relatively prosperous to bear a small burden for one year, just one year, they will do so cheerfully."

Budget 2016: Super rich should brace for higher tax

That one-time measure has not only become a permanent feature but its rate has also been raised. It's not as if other segments of taxpayers have been spared. If you don't factor in the tax deductions available, the effective tax as a percentage of income has gone up in the past five years for almost all taxpayers. But the super rich have been the worst hit.

A taxpayer earning over Rs 1.2 crore a year pays almost a third of his income in tax. Just five years ago, in 2011-12, he was paying less than 30%. Today's income cannot be compared with what one earned five years ago. So incomes for previous years have been adjusted for inflation using the cost inflation index announced by the government every year.

The calculation does not take into account the tax deductions available to taxpayers. If deductions are factored in, the effective tax rate for those in the lower income brackets will fall to low single digits. In the past two Budgets, the government has doubled the limit for tax-saving deductions. The deduction under Sec 80C was raised from Rs1 lakh to Rs 1.5 lakh in 2014.
Budget 2016: Super rich should brace for higher tax

Last year, an additional deduction of Rs 50,000 was introduced for contributions to the National Pension Scheme. However, we did not include deductions because the quantum of savings and eligibility can vary across individuals.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions