Budget 2013: P. Chidambaram proposes 10% surcharge on super-rich
The proposal will cover 42,800 individuals and entities.
"When I need to raise resources, who can I go to except those who are well placed in society. Only 42,800 persons in the whole country who admitted to a taxable income of exceeding Rs one crore per year.
"I propose to impose a surcharge of 10 per cent on persons whose taxable income exceeds Rs 1 crore per year," he said while unveiling Budget proposals for 2013-14.
The proposal to tax the super-rich was mooted by Prime Minister's Economic Advisory Council Chairman C Rangarajan and found echo in Wipro Chairman Azim Premji.
"I believe there is a little bit of spirit of Azim Premji in every affluent taxpayers and I am confident when I ask relatively affluent taxpayers to bear a small burden for one
year they will do so cheerfully," he said, adding the tax proposal will be only for one year.
He further said, "fiscal consolidation cannot be effected only by cutting expenditure. Where ever possible, revenues must also be augmented."
The surcharge will apply to individuals, HUFs, firms and entities with similar tax status, he added.