Super-Rich “Crorepatis” Hit With A 10% Surcharge!
NEW DELHI – This being the last budget before election, finance minister P Chidambaram decided to take a leaf out of the Warren Buffett rule book by whacking the wealthy with a rich tax, though he said it was only for the period of a year. The American billionaire has often pointed out that he pays a lower average tax rate than his secretary.
While imposing the 10% tax surcharge on those with incomes above Rs 1 crore, the finance minister invoked the Azim Premji ‘giving away’ spirit. However, though he did leave the rich a little less rich, it wasn’t as if he was distributing largesse to other taxpayers.
Most will have to pay at the old rate though the small taxpayers — those whose income is between Rs 2 lakh and Rs 5 lakh — get relief through a tax credit of up to Rs 2,000. This will benefit 1.8 crore people. Falling in the ambit of the rich tax will be 42,800 large tax payers.
