Press Esc to close
Thursday 19 January 2017
News updated at 12:03 PM IST
Weather
Max: 28.2°C
Min : 14.4°C
In Bengaluru
Sunny day

Chidambaram's marginal rebate to low-income taxpayers

New Delhi, Feb 28 , 2013 (IANS)
A man walks past television screens showing an advertisement for a program on India's annual budget at an electronics shop in Mumbai in this February 22, 2013 file photo. India's economy will grow 6.1-6.7 percent in the financial year that starts in April, the government forecast in a report on Wednesday, a day before Finance Minister P. Chidambaram unveils a budget that is expected to keep a lid on spending. Picture taken February 22, 2013. REUTERS
Finance Minister P. Chidambaram Thursday proposed a tax cut of Rs.2,000 for people earning an annual income of between Rs.200,000 and Rs.500,000 and said anything beyond that was not possible given the current circumstances.

Presenting the national budget for 2013-14, the finance minister said any hike in the exemption limit for direct tax that is paid by individuals would take millions out of the tax net and was neither a desirable proposition, nor feasible.

Accordingly, he proposed a Rs.2,000 tax credit for those in the first slab.
"This measure will benefit 1.8 crore (18 million) tax payers," he said, adding that this would entail an outgo of Rs.3,600 crore ($650 million) to the exchequer.

Chidambaram said the tax-GDP ratio in the country had slipped to 5.5 percent for direct taxes and 4.4 percent for indirect taxes. "Our tax-GDP ratio is one of the lowest in the world. We should reclaim 11.9 percent tax-GDP ratio in the short term."

For the affluent, the finance minister took the cue from what was proposed as the "super rich tax" by Wipro chairman Azim Premji, and said a surcharge of 10 percent was proposed on the those earning more than Rs.1 crore per annum.

"This surcharge will be for one year," the finance minister said, adding there were some 42,800 people who fell in that bracket. "I am sure, there is a little bit of Azim Premji in everyone and this additional burden will be for one year."

 

Go to Top

Photo Gallery
PWD labourers paint the statue of Netaji Subhash Chandra Bose at Shymabazar in Kolkata...

PWD labourers paint the statue of Netaji Subhash Chandra Bose at Shymabazar in Kolkata...

Army personnel perform martial arts during a 'Know Your Force' mela at Morhabadi ground...

Army personnel perform martial arts during a 'Know Your Force' mela at Morhabadi ground...

Madame Tussauds' designers apply the final touches to the wax figure...

Madame Tussauds' designers apply the final touches to the wax figure...

Devotees walking at a Pantoon bridge during the annual Magh Mela at Sangam in Allahabad...

Devotees walking at a Pantoon bridge during the annual Magh Mela at Sangam in Allahabad...

Indian Army's mighty tanks move at Rajpath during a rehearsal for the Republic Day parade...

Indian Army's mighty tanks move at Rajpath during a rehearsal for the Republic Day parade...

A sand sculpture of Virat Kohli with a message wishing him and the Indian team luck...

A sand sculpture of Virat Kohli with a message wishing him and the Indian team luck...

Stunt performers ride a motorcycle and a car on the walls of the 'Well of Death' at the Magh...

Stunt performers ride a motorcycle and a car on the walls of the 'Well of Death' at the Magh...

Magdalena Kammermeier works on a snow sculpture of U.S. President-elect Donald Trump...

Magdalena Kammermeier works on a snow sculpture of U.S. President-elect Donald Trump...

A labour watering a model of Peacock which is made with flowers ahead of Republic Day Flower...

A labour watering a model of Peacock which is made with flowers ahead of Republic Day Flower...

Students paint their faces as tiger during a tiger programme for Inter-school Tiger Fest...

Students paint their faces as tiger during a tiger programme for Inter-school Tiger Fest...

Like us on Facebook

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523