New Delhi, Feb 28 (IANS) Finance Minister Arun Jailey hopes to rope in a significant 35 percent additional revenues by increasing the tax surcharge on the corporate sector, including a hike of 2 percentage points on the levy imposed for distribution of dividends.
Against the revises estimate of Rs.30,642 crore which is scheduled to be collected by way of surcharge on the corporate sector, Jaitley has budget for Rs.41,538 crore in the next fiscal, which works out to an increase of 35.5 percent .
A break-up, however, was not given on how much he proposes to raise from each item.
In the case of companies, the slab has been fixed at 7 percent for income between Rs.1 crore and Rs.10 crore and 12 percent above that.
For foreign companies, surcharge will continue at 2 percent on incomes between Rs.1 crore and Rs.10 crore and 5 percent above that.
Earlier, the surcharge was 10 percent on individuals with an income of Rs.1 crore and above, while on companies, it was 5 percent up to Rs.10 crore and 10 percent above that.
n a bid to remove “high-cost, low-yield taxation”, Jaitley proposed to abolish wealth tax and impose a 2 percent additional surcharge on the “super rich” and companies to garner more funds.
In the case of companies, the new slab of surcharge is proposed at 7 percent for income between Rs.1 crore and Rs.10 crore and 12 percent above that. Earlier, the surcharge was 5 percent up to Rs.10 crore and 10 percent above that.
For foreign companies, surcharge will continue at 2 percent on incomes between Rs.1 crore and Rs.10 crore and 5 percent above that.
“It is also proposed to levy a surcharge at 12 percent as against current rate of 10 percent on additional income tax payable by companies on distribution of dividends and buyback of shares, or by mutual funds and securitisation trusts on distribution of income,” the finance minister said.