Budget 2013 highlights: Chidambaram ends speculation, rings in crorepati tax

Finance Minister P Chidambaram today left tax rates and slabs unchanged for the coming financial year except for those earning over Rs one crore per annum. “Fiscal consolidation cannot be carried out only by curbing expenditure,” Chidambaram said. The current income tax slabs were only introduced only last year so there’s no reason to revise slabs or rates, the Finance Minister said. [caption id=“attachment_643241” align=“alignleft” width=“380”]  Screengrab of budget speech.[/caption] The Finance Minister has given some relief to people earning Between Rs 2 lakh to 5 lakh. Persons who earn between Rs two lakh to five lakh will be eligible for a tax credit of Rs 2,000. However, contrary to expectations the Finance Minister chose to go after the super rich in this budget and announced that people earning more than Rs one crore per annum would need to pay a surcharge of 10 percent, up from the existing 5 percent. This surcharge would be applicable only for one year, the Finance Minister said, adding that the rich would need to understand the duress of the government for this one year. The education cess on taxpayers was left untouched at 3 percent.