Budget 2013: 10% surcharge on taxable income exceeding Rs 1 cr

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.[caption id=“attachment_643395” align=“alignleft” width=“380”] The super rich to pay more tax. Andrew Middleton/Flickr[/caption]

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.

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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.

PTI