Highest personal I-T rate in India still lower than in China, US, South Africa
5 years, 8 months ago

Highest personal I-T rate in India still lower than in China, US, South Africa

India TV News  

Justifying raising of tax incidence on the super-rich, the finance ministry said the highest tax rate in India was still lower than many countries, including the US and China, and it was a worldwide phenomenon to ask the super-rich to pay extra tax. Revenue Secretary Ajay Bhushan Pandey sought to justify the Budget proposal to increase the surcharge on super-rich saying that the highest tax individual tax rate is 45 percent in China and South Africa, and 50.3 percent in the US. Finance Minister Nirmala Sitharaman in the Budget for 2019-20 presented last week proposed to increase surcharge from 15 percent to 25 percent on taxable income between Rs 2-5 crore and from 15 percent to 37 percent for income above Rs 5 crore. Following the increase in surcharge, the effective income tax rate for individuals with a taxable income of Rs 2-5 crore will go up from 35.88 percent to 39 percent and for those above Rs 5 crore it would go up to 42.7 percent. "I, therefore, propose to enhance surcharge on individuals having taxable income from Rs 2 crore to 5 crore and Rs 5 crore and above so that effective tax rates for these two categories will increase by around 3 percent and 7 percent respectively," she said.

India China Tax South Africa Budget Income Crore Rate Highest Rs 5 Crore Taxable Income  rs  crore  china  earning  lower  rate  income  south  personal  surcharge  tax  africa  increase  highest  india

History of this topic

India’s taxes nipping at your earnings? It could be worse.
Trending News
1 month, 2 weeks ago

India’s taxes nipping at your earnings? It could be worse.

Live Mint  

India’s seemingly high income tax rates are softer than that of several advanced economies, allowing for a better quality of life across income groups, data show. In India, the highest marginal rate for taxpayers in the highest income slab is 39% under the new tax regime and 42.7% in the old regime. Let’s consider a ₹50 lakh annual income as …

Can India transition to a single income tax rate?
1 month, 3 weeks ago

Can India transition to a single income tax rate?

Live Mint  

The slab rate system of taxation has been a cornerstone of India’s tax framework since its inception. Of the approximately 6.9 crore individuals who filed returns, the gross total income reported was ₹53.7 lakh crore, while the total tax liability amounted to just ₹5.7 lakh crore—an effective tax rate of only 10.64%. For instance, an individual with a gross income …

India’s net direct tax collection swells 16% to ₹16.90 trillion so far in FY25
Trending News
2 months ago

India’s net direct tax collection swells 16% to ₹16.90 trillion so far in FY25

Live Mint  

New Delhi: Strong growth in tax collection from both personal and corporate income helped the Central government to collect ₹16.9 trillion in direct tax revenue so far this financial year after adjusting for tax refunds, official data showed on Monday. The net direct tax collection growth of 15.9% so far this year exceeds the 12.8% growth rate that finance minister …

Agri and All Trade Chambers urge Union Finance Minister for bold steps in 2025-26 budget to revive economy
2 months ago

Agri and All Trade Chambers urge Union Finance Minister for bold steps in 2025-26 budget to revive economy

The Hindu  

Agri and All Trade Chambers, ahead of the Union Budget 2025-26, urged Union Finance Minister Nirmala Sitharaman to look for bold, drastic and innovative steps to revive the economy back to the 7% growth recorded in the preceding three years to achieve the goal of USD 5 trillion economy by 2030. Noting that proactive steps were essential to put the …

India must do more to tax its super-rich, France’s Piketty says
3 months ago

India must do more to tax its super-rich, France’s Piketty says

Live Mint  

By Manoj Kumar NEW DELHI, Dec 13 - India should do more to tax its super-rich given its high levels of inequality, French economist and author Thomas Piketty said on Friday. "India should be active in taxing the rich," Piketty said at an event organised by Delhi-based think tank Research and Information System for Developing Countries and the Delhi School …

India must do more to tax its super rich, says French economist Thomas Piketty
3 months ago

India must do more to tax its super rich, says French economist Thomas Piketty

Hindustan Times  

Thomas Piketty, a French economist and novelist, stated on Friday that given India's high levels of inequality, more should be done to tax its super-rich. Piketty stated, "India should be active in taxing the rich," during a gathering hosted by the Delhi School of Economics and the think tank Research and Information System for Developing Countries, located in Delhi. He …

‘India must impose more taxes on super-rich’: Economist Thomas Piketty as top 1% hold over 40% of nation’s wealth
3 months ago

‘India must impose more taxes on super-rich’: Economist Thomas Piketty as top 1% hold over 40% of nation’s wealth

Live Mint  

NEW DELHI - India should do more to tax its super-rich given its high levels of inequality, French economist and author Thomas Piketty said on Friday. "India should be active in taxing the rich," Piketty said at an event organised by Delhi-based think tank Research and Information System for Developing Countries and the Delhi School of Economics. He said India …

State of income tax in India: Rich pay more, middle class less
4 months ago

State of income tax in India: Rich pay more, middle class less

Firstpost  

Income tax liability on salaried individuals earning less than Rs 20 lakh a year, broadly described as middle class, has fell sharply during the 10 years of Prime Minister Narendra Modi-led government. Also, the income tax liability of those earning more than Rs 50 lakh has increased 3.2 times or 282 per cent, from Rs 2.52 lakh crore in 2014, …

Income tax share from below ₹10 lakh group shrinks over 10 years, high earners dominate
Trending News
4 months ago

Income tax share from below ₹10 lakh group shrinks over 10 years, high earners dominate

Live Mint  

Data from the Income Tax Department reveals a shift in India’s tax landscape over the past decade, with the share of tax collected from individuals earning less than ₹10 lakh dropping from over 10% to 6.22%. Tax collection from this group has tripled, rising from ₹2.52 lakh crore in 2014 to ₹9.62 lakh crore in 2024, data showed. “Tax liability …

India’s tax-to-GDP ratio to hit a record high of 11.7% of GDP in 2024-25: Revenue Secretary
1 year, 1 month ago

India’s tax-to-GDP ratio to hit a record high of 11.7% of GDP in 2024-25: Revenue Secretary

The Hindu  

February 06, 2024 08:19 pm | Updated 09:05 pm IST - NEW DELHI India’s tax-to-GDP ratio is expected to hit a record high of 11.7% of GDP in 2024-25, led by an uptick in the more ‘equitable’ direct taxes, and the government will continue to simplify and rationalise the tax regime to reduce disputes, litigation and intrusive means of enforcement, …

India not ready for high tax-GDP levels
1 year, 1 month ago

India not ready for high tax-GDP levels

New Indian Express  

Budget 2024 estimates show that the ratio of taxes collected by the Centre to GDP will likely touch 11.6 percent in the current financial year and breach the 12 percent-mark in the next. However, the government claims India’s current tax-to-GDP ratio is much better than many countries with similar per capita income. Such a high ratio is possible only when …

Naysayers Have It Wrong, Incomes in India Are Rising
1 year, 2 months ago

Naysayers Have It Wrong, Incomes in India Are Rising

News 18  

The state of income in India has suddenly become a topic of raging discussion after former RBI Governor Raghuram Rajan and economist Rohit Lamba suggested that the country cannot escape the lower-middle income trap by 2047. India’s gross direct tax collections in the ongoing financial year, until November 9, have increased almost 18 per cent to Rs 12.37 lakh crore. …

‘Super rich’ incomes’ share ebbing amid middle-class mobility: CBDT
1 year, 4 months ago

‘Super rich’ incomes’ share ebbing amid middle-class mobility: CBDT

The Hindu  

India’s tax base has widened sharply since 2013-14, with individuals moving up the income ladder and the proportion of super-rich taxpayers’ incomes declining, the Central Board of Direct Taxes said on Thursday, days after the Congress cited income tax data to show widening income inequality in the country. The overall number of income tax returns filed by individuals has risen …

Higher capital gains tax in the offing as PM Modi looks to overhaul income tax
1 year, 10 months ago

Higher capital gains tax in the offing as PM Modi looks to overhaul income tax

Live Mint  

India is preparing an overhaul of its direct tax laws to replace a byzantine matrix of rules and help Prime Minister Narendra Modi reduce widening income inequality if he returns to power next year, according to people with knowledge of the matter. Oxfam International estimates the top 10% of India’s population holds 77% of national wealth and government data show …

Where does India stand in the world in comparison of individual tax rates?
2 years, 1 month ago

Where does India stand in the world in comparison of individual tax rates?

Live Mint  

With the Union Budget just a few days away, the expectations are high around significant changes in individual taxes. Indian scenario: India follows the progressive tax slab rate system for individual taxpayers, where the tax rate is determined based on varied factors: a) Age groups: Normal taxpayers, Senior citizens and Super senior citizens where senior people enjoy a higher basic …

India’s richest 1 per cent own more than 40 per cent of total wealth: Oxfam
2 years, 1 month ago

India’s richest 1 per cent own more than 40 per cent of total wealth: Oxfam

The Hindu  

Published : Jan 16, 2023 15:59 IST The richest one per cent in India now own more than 40 per cent of the country’s total wealth, while the bottom half of the population together share just 3 per cent of wealth, a new study showed on January 16. Releasing the India supplement of its annual inequality report on the first …

Most Indians want tax on the rich, top firms
3 years, 1 month ago

Most Indians want tax on the rich, top firms

Deccan Chronicle  

Chennai: More than 80 per cent of Indians support a tax on the rich and corporations who earned record profits during the pandemic, a nationwide survey conducted ahead of the Budget by Fight Inequality Alliance India said. The study had said that an annual wealth tax in India would raise $78.3 billion a year with a 2 per cent tax …

Tax the Super Rich in India to Raise Resources to Fight Covid-19, Says Nobel Laureate Joseph Stiglitz
4 years, 5 months ago

Tax the Super Rich in India to Raise Resources to Fight Covid-19, Says Nobel Laureate Joseph Stiglitz

News 18  

Kolkata: American economist and Nobel laureate Joseph E Stigliz on Monday advocated taxing the superrich class in India to raise resources for fighting theCOVID-19 pandemic, if the government fails to pool in the required funds. "Funds should be targeted at high-impact areas rather than low-impact ones, and if you can't get resources, raise taxes as you have a lot of …

Every big transaction you make, taxman will be watching you
5 years, 1 month ago

Every big transaction you make, taxman will be watching you

Live Mint  

New Delhi: The income tax department will track more high-value transactions of individuals to ensure that these get reflected in their income tax returns, Central Board of Direct Taxes chairman P.C. Once we have this information available with us along with the data of the taxpayers, we will be in a position to compare almost on a real-time basis as …

Opinion | Why higher taxes are not the way to better welfare in India
5 years, 4 months ago

Opinion | Why higher taxes are not the way to better welfare in India

Live Mint  

Abhijit Banerjee, winner of the 2019 Economics Nobel along with Esther Duflo and Michael Kremer, has been talking up the idea of high and rising marginal tax rates for the rich. While the rich may be leaving India for reasons other than just high tax rates, surely, hiking marginal taxes will hardly convince them to return and invest in this …

Corporate tax cut makes India an investment destination; to attract foreign firms to set up units: Nirmala Sitharaman
5 years, 5 months ago

Corporate tax cut makes India an investment destination; to attract foreign firms to set up units: Nirmala Sitharaman

Firstpost  

Quoting experts, Nirmala Sitharaman said India is now much better than China in terms of rate, transparency, and tax administration New Delhi: India has become a highly competitive investment destination post-corporate tax reduction as the rates are now lower than that in China and most Southeast Asian countries, Finance Minister Nirmala Sitharaman said on Sunday. India was earlier at disadvantage …

How a small tax-paying elite funds the Indian state
5 years, 7 months ago

How a small tax-paying elite funds the Indian state

Live Mint  

The move to raise surcharges on the incomes of India’s super-rich taxpayers has led to a barrage of criticism from tax experts who have questioned such ‘soak-the-rich’ policies. The analysis also shows that the top 5% of effective tax-payers in the country, equivalent to 0.1% of the country’s population, contribute nearly three-fifths of India’s income tax collections. If India’s personal …

Govt's tax rise for high earners may trigger fund flight: Former RBI governor Bimal Jalan
5 years, 7 months ago

Govt's tax rise for high earners may trigger fund flight: Former RBI governor Bimal Jalan

Firstpost  

Former Reserve Bank of India governor, Bimal Jalan, has warned that the higher income taxes the government introduced in its budget could lead to a flight of funds from the country New Delhi: Former Reserve Bank of India governor, Bimal Jalan, has warned that the higher income taxes the government introduced in its budget could lead to a flight of …

Why super-rich sulking over super-hike in tax rates is bunkum; someone ought to foot the bill anyway
5 years, 7 months ago

Why super-rich sulking over super-hike in tax rates is bunkum; someone ought to foot the bill anyway

Firstpost  

The higher tax charges will apply to individuals and domestic investors in the said income brackets as well. Whatever social welfare schemes followed in the next five years and into the second term—free pension to small traders/farmers, free universal healthcare, endless farm loan waivers, and interest-free credit—confirmed this approach. Increased burden of social sector spending and low revenue inflows left …

$42 billion wiped off Indian stocks as doubts on tax linger
5 years, 8 months ago

$42 billion wiped off Indian stocks as doubts on tax linger

Live Mint  

It’s an old saw of India’s budget documents -- the devil lies in details of the fine print. “An investment vehicle -- such as a category III alternative investment or an FPI -- taxed at a fund level is likely to get affected as the income may easily exceed 50 million rupees,” said Vaibhav Sanghavi, co-chief executive officer at Avendus …

No targeting of FPIs; higher tax on all super-rich including Indian residents: Finance Minister
5 years, 8 months ago

No targeting of FPIs; higher tax on all super-rich including Indian residents: Finance Minister

India TV News  

Amid a backlash from foreign portfolio investors over the new tax, the government on Tuesday said it is not targeting FPIs by raising tax on super-rich individuals, and foreign investors have an option to convert into a corporate entity to avail of lower rates available to such category. However, some 40 per cent of the FPIs automatically come under the …

No targeting of FPIs, higher tax on all super-rich, says government
5 years, 8 months ago

No targeting of FPIs, higher tax on all super-rich, says government

Live Mint  

New Delhi: Amid a backlash from foreign portfolio investors over the new tax, the government on Tuesday said it is not targeting FPIs by raising tax on super-rich individuals, and foreign investors have an option to convert into a corporate entity to avail of lower rates available to such category. For an individual earning total income of more than ₹5 …

Super-rich tax lacks teeth: Special treatment for dividend, capital gains take away its sting
5 years, 8 months ago

Super-rich tax lacks teeth: Special treatment for dividend, capital gains take away its sting

Firstpost  

Finance Minister Nirmala Sitharaman has steeply hiked the wealthy with a super-rich tax in Union Budget 2019. For the assessment year 2018-19, income tax for individual taxpayers has been increased by a surcharge of 10 percent if income exceeds Rs 50 lakhs but does not exceed Rs 1 crore. The company that is declaring a dividend has to pay 15 …

Budget 2019: Surcharge rate on income tax increased for super-rich
5 years, 8 months ago

Budget 2019: Surcharge rate on income tax increased for super-rich

Live Mint  

Super-rich will have to contribute more towards tax collection. So in total there will be four surcharge slab and rates, beside the above mentioned two new rates, the existing rates are—10% for those with total income between ₹50 lakh and ₹1 crore, 15% for those with taxable income between ₹1 crore and ₹2 crore. Current highest rate of applicable income …

Effective income tax rate goes up for super-rich. Details here
5 years, 8 months ago

Effective income tax rate goes up for super-rich. Details here

Live Mint  

Finance Minister Nirmala Sitharaman today presented the first Budget of the Modi 2.0 government. According to the Budget proposals, income tax surcharge on individuals having taxable income above ₹2 crore will have to pay higher surcharge, thus leading to higher effective tax rate for them. Earlier, tax payers with taxable income between ₹50 lakh and ₹1 crore lakh had to …

Tax no more
5 years, 8 months ago

Tax no more

India Today  

Winston Churchill had prophetically remarked: "For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle." Those earning less than Rs 5 lakh a year pay no taxes while those in the income range of Rs 5-10 lakh pay 20 per cent tax, plus …

Relief likely for middle class, super-rich to face higher taxation: Pre-budget survey
5 years, 8 months ago

Relief likely for middle class, super-rich to face higher taxation: Pre-budget survey

India Today  

A pre-budget survey conducted by KMPG India suggested that a majority of responders want tax exemption limit for individuals to be increased from the current Rs 2.5 lakh. Out of the total number of participants, at least 74 per cent felt the tax exemption threshold of personal income tax would be hiked by the government from the existing Rs 2.5 …

Direct tax-GDP ratio of 5.98% during FY18 best in a decade; returns filings up 80% in last four years: Finance ministry
6 years, 2 months ago

Direct tax-GDP ratio of 5.98% during FY18 best in a decade; returns filings up 80% in last four years: Finance ministry

Firstpost  

Growth rate for corporate income tax and personal income tax stood at 17.7 percent and 18.3 percent, respectively. New Delhi: The direct tax-to-GDP ratio of 5.98 percent achieved during 2017-18 fiscal is the best in the last 10 years, the finance ministry said on Wednesday. In its 2018 review said, the ministry said: “There is a constant growth in direct …

Boosting tax receipts priority, says Ajay Bhushan Pandey
6 years, 3 months ago

Boosting tax receipts priority, says Ajay Bhushan Pandey

Live Mint  

New Delhi: Ajay Bhushan Pandey, who took charge as revenue secretary on Friday, said his immediate priority was to improve tax collections by using technology and easing procedures. “My priority at this moment is to help improve the tax-GDP ratio in the country by introducing technology and also making procedures, rules and regulations simpler so that people have a natural …

Is India an outlier when it comes to tax-GDP ratio?
7 years, 1 month ago

Is India an outlier when it comes to tax-GDP ratio?

Live Mint  

Mumbai/New Delhi: Of late, several economists and policymakers have drawn attention to India’s low share of tax revenues as a proportion of the gross domestic product of the Indian economy. The realization, or rather the belief, that India’s tax-GDP ratio is low has also spurred frenetic efforts to mobilize ever-greater tax revenues. A Mint analysis of tax revenue data for …

The nation wants you to pay
8 years, 10 months ago

The nation wants you to pay

Deccan Chronicle  

A few years ago, a man used to come home every morning to teach me how to sing. First, only around one per cent of Indians pay any income tax and about twice that number have filed returns. To understand this number, we must know that in the United States, 45 per cent of the population pays tax. A study …

Only 3.81% Indians pay Income Tax; Maharashtra, Delhi pay 53% of the total
8 years, 10 months ago

Only 3.81% Indians pay Income Tax; Maharashtra, Delhi pay 53% of the total

Firstpost  

By Devanik Saha, IndiaSpend On 29 April 2016, Prime Minister Narendra Modi announced–for the first time ever in India–the release of income-tax data, which follows economist Thomas Piketty’s call for income-tax data transparency. Only 3.81% of Indians pay income taxes As many as 48 million individuals were tax assessees* in the assessment year 2014-15, or 3.81 percent of India’s population. …

Budget 2016-17: Rich to pay more taxes
9 years ago

Budget 2016-17: Rich to pay more taxes

Deccan Chronicle  

New Delhi: The government on Monday proposed higher taxes on the super-rich in the country in the Union Budget. The finance minister Arun Jaitley proposed higher Dividend Distribution Tax tax on those receiving dividend in excess of Rs 10 lakh per annum. I, therefore, propose that in addition to DDT paid by the companies, tax at the rate of 10 …

India is an outlier in its tax policy
9 years ago

India is an outlier in its tax policy

Live Mint  

The celebrated French economist Thomas Piketty’s recent visit to India caused much consternation for his remarks. Some postulate that an economy’s tax-to-GDP ratio is, or should be, a function of its per capita GDP, and hence it is misleading to compare India’s with those much wealthier. The second and perhaps the more important deviation in India’s tax structure from other …

Govt plans 35% tax for super-rich
11 years, 6 months ago

Govt plans 35% tax for super-rich

India TV News  

New Delhi: The government is likely to propose a higher levy for the super-rich under the new direct tax law. This includes a 35 per cent levy on those earning more than Rs 10 crore and even more for those earning over Rs 50 crore. The Direct Taxes Code Bill, which will come in place of a 50-year-old legislation, will …

Union Budget 2013: High earners bemoan 10% tax surcharge
12 years ago

Union Budget 2013: High earners bemoan 10% tax surcharge

Firstpost  

Just 42,800 of India’s 1.2 billion people will be affected by the extra take on pay above Rs 1 crore, according to the finance minister. “There are substantial number of people with good income who are not paying taxes and the focus should have been more on bringing them under the tax net,” said Sunil Duggal, CEO of consumer goods …

Tax rich more, enhance tax-GDP ratio, demands civil society
12 years, 1 month ago

Tax rich more, enhance tax-GDP ratio, demands civil society

The Hindu  

India should tax the rich more and enhance the tax-GDP ratio by increasing revenue from direct sources of tax to fund inclusive development, civil society organisations urged in their budget proposals for 2013-14 on Tuesday. “.the Union Finance Ministry to address the lack of progressive structure in the country’s tax system and raise the much needed additional resources for financing …

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