InvestorQ : Is it true that the government is again planning to revive wealth tax and also increase the tax rates for the super rich persons?
Rashi Mehra made post

Is it true that the government is again planning to revive wealth tax and also increase the tax rates for the super rich persons?

Answer
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vidhya Laxmi answered.
6 months ago


These are not announcements made by the government but suggestions given by a number of senior IRS officers to the government as a temporary revenue enhancement measure. The tax authorities may come up with a unique plan to fund the fight against COVID-19; tax the super-rich and foreign companies. One suggestion is to raise the tax rate for the above (Rs.1 crore) income category to 40% from the current 30%. CBDT may also look at re-introduction of wealth tax on persons with income above Rs.5 crore. There are also other ways being considered. The officers have suggested increasing the surcharge on foreign companies as well as imposing a special COVID surcharge. These measures would be for a period of 6 months and could generate Rs.18,000 crore. That would give enough firepower to carry on the battle against COVID-19.