No Revision in Tax Slabs, ‘Super Rich’ to be Taxed

After giving some cheer to the home buyers, Finance Minister P Chidambaram has disappointed the tax payers and salaried class. Contrary to all expectations, he ruled out revising the tax slabs and preferred to maintain the status quo.

However, he came up with a new tax for “Super Rich” people in his budget for the financial year 2013-14. People, having taxable income of Rs one crore and above per annum, will have to pay an additional 10% charge, in addition to their regular taxes.  According to the FM, the ‘Super Rich’ list includes just 42,800 people.

Companies with an income of Rs 10 crore and above in a year, will have to pay 10% extra surcharge. There is a good news for the individual taxpayers too – people earning up to Rs 5 lakh per annum, will get a tax credit of Rs 2,000.

Income Tax Slabs:

Income up to Rs 2 lakh – NIL
Income between Rs 2 lakh – Rs 5 lakh – 10%
Income between Rs 5 lakh – Rs 10 lakh – 20%
Income above Rs 10 lakh – 30%