{"id":137350,"date":"2019-07-15T12:00:15","date_gmt":"2019-07-15T11:00:15","guid":{"rendered":"https:\/\/www.transcend.org\/tms\/?p=137350"},"modified":"2019-07-10T10:36:42","modified_gmt":"2019-07-10T09:36:42","slug":"budget-2019-indias-super-rich-peak-tax-rate-at-42-7","status":"publish","type":"post","link":"https:\/\/www.transcend.org\/tms\/2019\/07\/budget-2019-indias-super-rich-peak-tax-rate-at-42-7\/","title":{"rendered":"Budget 2019: India’s Super-Rich Peak Tax Rate at 42.7%"},"content":{"rendered":"

Finance\u00a0Minister<\/em> Nirmala Sitharaman announced that individuals earning more than Rs 5 crore [approx. \u20ac 630,000 or US$ 740,000] a year would pay a surcharge of 37.5 percent on their tax, over above their 30 percent marginal tax.<\/em><\/p><\/blockquote>\n

5 Jul 2019 – <\/em>Finance\u00a0Minister Nirmala Sitharaman today announced that the tax rate on the super-rich would go up, with a peak effective tax rate of 42.7 percent being higher than the US’\u00a040 percent.<\/p>\n

Presenting\u00a0her maiden Budget, Sitharaman said that individuals earning more than Rs 5 crore a year would pay a surcharge of 37.5 percent on their tax,\u00a0over above their 30 percent marginal tax. This comes up to an effective rate of 41.1 percent rate (Rs 30 tax on every Rs 100 earned, plus another 37 percent on Rs\u00a030, which is Rs 11.1). Add to that various cess, and the peak tax rate comes up to 42.7 percent.<\/p>\n

\"\"<\/a><\/p>\n

The surcharge on\u00a0those earning between Rs 2 and Rs 5 crore increased to\u00a025 percent, bringing their effective tax rate to about\u00a039 percent.<\/p>\n

The measures are in lieu of the rising income levels, announced Finance Minister Nirmala Sitharaman, during her maiden Union Budget<\/a> on Friday.<\/p>\n

The timing of the announcement\u00a0could potentially pose another problem for\u00a0taxpayers.<\/p>\n

“The significant increase in taxation for those earning above Rs 2 crore means that the advance tax installment paid for the first quarter in June 2019 would be lower than the actual tax installment post the Budget announcements. Hence, these high-income earners would be required to pay interest on the additional amount of tax as well for the first quarter,” chartered accountant Paras Savla points out, unless clarity is issued on this later.<\/p>\n

Note: A previous version of this story said the peak income tax rate is 38 percent. This has been corrected.<\/em><\/p>\n

Go to Original \u2013 moneycontrol.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

5 Jul 2019 – Finance Minister Nirmala Sitharaman announced today that individuals earning more than Rs 5 crore [approx. \u20ac 630,000 or US$ 740,000] a year would pay a surcharge of 37.5 percent on their tax, over above their 30 percent marginal tax.<\/p>\n","protected":false},"author":4,"featured_media":137351,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180],"tags":[239,232,354,759,651,985,1213],"class_list":["post-137350","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brics","tag-brics","tag-capitalism","tag-economics","tag-india","tag-justice","tag-social-justice","tag-super-rich"],"_links":{"self":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/137350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/comments?post=137350"}],"version-history":[{"count":0,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/posts\/137350\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media\/137351"}],"wp:attachment":[{"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/media?parent=137350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/categories?post=137350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.transcend.org\/tms\/wp-json\/wp\/v2\/tags?post=137350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}