Bad news for the ultra wealthy: Super rich tax to continue

Here’s some bad news for India’s super wealthy: The tenpercent additional surcharge on income tax for those earning above Rs 1 crore – the “super-rich” tax – has been extended from FY14 to FY15. This was announced as a one-year charge in last year’s budget but now it is not.

Moreover, no changes were made to direct taxes.

So personal income tax remains as follows:

[caption id=“attachment_74213” align=“alignleft” width=“380”]  Picture courtesy: Nicocrisisfull/Flickr[/caption]

i) Rs. 2 lakh to Rs. 5 lakh: 10 percent (A tax rebate of Rs. 2,000 from tax calculated will be available for people having an annual income upto Rs. 5 lakh) ii) Rs. 5 lakh to Rs. 10 lakh: 20 percent

iii) Above Rs. 10 lakh: 30 per cent Surcharge for high earners: Individuals who earn more than Rs 1 crore per year have to pay a 10 percent surcharge on their income.

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Corporate tax rate for domestic companies remains unchanged at 33.99 percent.Minimum alternate tax (MAT) rate stands at 20.96 percent. Corporate tax rate for foreign companies stands at 43.26 percent.