Tax is an important source of income for the Indian Government through which it tries to fulfil its budget expenses for the coming year. There are millions of people who fall under the tax bracket and who pay tax whenever their taxable income exceeds the minimum exemption limit. In addition to these earlier there were no taxes which an individual would have to pay. But the present budget of 2013 which was tabled at the Parliament by the Finance Minister increased the scope of revenue generation. The Finance Minister this year came with an additional surcharge bracket for super rich peoples
What is Super Rich Tax: The tax which is only imposed to the person who are come under the definition of super rich. So now you are excited to know that you are super rich, rich, middle or poor people. So the good news for those who are earning less than Rs.1crore annualy that you does not comes under super rich people definition. And people who will be happy to know that they are super rich but only a little burden has been imposed by the finance minister is about surcharge.
How much extra tax on super rich peoples: Budget for the year 2013 did not bring too much for the individual taxpayers as they expected with baited breadth from their Finance Minister to give them some relief on the tax front in this midst of inflation. The budget neither gave anything to cheer about nor took anything away that could be mourned by the individual taxpayer. But there was a surprise waiting for the richer section of the Indian society when they were slapped with an additional surcharge of ten percent. This surcharge is applicable to those people whose taxable income would exceed the limit of Rs. 1 crore or one could say 10 million rupees.
Benefit and Loss of super rich tax: The move was really a disheartening one for the richer sections of the society as they would now have to shell out more in the form of tax in the coming year. But on the other hand the move was very applauding, as it would increase the Income base of the Indian Revenue and in turn would curb the deficit. The move is going to affect around over 42800 people across India who fall under such a bracket. The Finance Minister expected that the rich would bear such a burden for just one year period as he hopes that there is an Azim Premji in every wealthy taxpayer and one definitely contribute to the development of his/her country by shelling out few extra bugs from his/her large income.
The finance minister also gave relief to these richer sections as he determined a period of just one year in which this provision will be applicable. So this policy will only be applicable in the coming fiscal year. The move is not only applicable to individual but also to firms and entities, so the scope of income is very large. They would have to pay tax in addition to the maximum tax bracket of 30%. In the midst P.Chidambram gave only a slight relief to individual taxpayer by awarding them a tax credit of just Rs. 2000 for the person whose income exceeds Rs 5 lacs. The move is not likely to affect many people as not many people are likely to fall under the tax credit bracket so the move is not going to give relief in actual sense. So to sum up the budget one could say that it neither gave much nor took much from its people. So the sense of the budget was not overwhelming in the public.