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:

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.

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.