Indian Finance Minister had abolished the wealth tax but increased the surcharge to 12 percent on individuals earning Rs 1 crore and above annually and on firms with an annual income of Rs 10 crores or more. India also introduced a surcharge of 7 percent on companies having an income between Rs 1 crore and Rs 10 crores. The new measures will lead to tax collection of Rs 9,000 crores whereas the wealth tax could earn only Rs 1,008 crores.
In India, the surcharge would now be 12 percent for individuals earning Rs 1 crore and above and companies with income of Rs 10 crores and above. Sources said that taxation of super rich companies and individuals is under consideration of the budget makers for 2015-16. So far, no rate has been finalised, but different aspects of the proposal have been analyzed. One of the proposals is to charge 10 percent rate of surcharge on the pattern of India. However, budget markers are working out the estimated revenue collection from the proposed measure. While analyzing the proposal, definition of super rich in Pakistan and minimum threshold for imposition of surcharge on super rich individuals and companies has yet to be finalised.
While presenting the budget for 2015-16, Indian Finance Minister had reportedly said that with the 2 percent additional surcharge a collection of Rs 9,000 crores is targeted against a tax sacrifice of Rs 1,008 crores (on account of abolition of wealth tax). The surcharge would be applicable on individuals, Hindu Undivided Families, firms, cooperative societies and local authorities having income exceeding Rs 1 crore.