Finance Minister P Chidambaram today proposed a surcharge of 10 percent on persons whose taxable income exceed Rs 1 crore per year in his Budget 2013-14 speech in Parliament.
"This will apply to individuals, HUFs (Hindu Undivided Families), firms and entities with similar tax status," Chidambaram said in Parliament.
The finance minister said that he proposed to increase the surcharge from 5 percent to 10 percent on domestic companies whose taxable income exceeds Rs 10 crore per year.
For foreign firms, the surcharge will increase from 2 percent to 5 percent.
The current surcharge of 5 percent is being increased to 10 percent on dividend distribution tax or tax on distributed income, Chidambaram said.
The additional surcharges will be imposed only for the fiscal of 2013-14, the minister said. The minister said that he expects the relatively prosperous to bear a small burden for one year.
Chidambaram said that the education cess for all taxpayers shall continue at 3 percent.
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Updated Date: Dec 20, 2014 16:17:44 IST