The government should refrain from raising income tax surcharge on the super-rich and reintroducing wealth tax in the upcoming 2026-27 Budget, as the move could prompt persons in high-income brackets to leave the country for low-tax jurisdictions, according to tax experts.
Currently, a surcharge on income tax is payable by high-income individuals with earnings above Rs 50 lakh. A 10 per cent surcharge is levied on income between Rs 50 lakh and Rs 1 crore, 15 per cent (Rs 1-2 crore), and 25 per cent (Rs 2-5 crore).
Those earning above Rs 5 crore and are in the new income tax regime pay a 25 per cent surcharge, while those under the old tax regime pay a surcharge at a 37 per cent rate.
According to estimates by independent economists, the GST rate cut and lower income tax collections are likely to cost the exchequer around Rs 2 lakh crore in the current fiscal. Any additional source of revenue in FY27 could help the government in additional allocations towards defence and other …​The government should refrain from raising income tax surcharge on the super-rich and reintroducing wealth tax in the upcoming 2026-27 Budget, as the move could prompt persons in high-income brackets to leave the country for low-tax jurisdictions, according to tax experts.
Currently, a surcharge on income tax is payable by high-income individuals with earnings above Rs 50 lakh. A 10 per cent surcharge is levied on income between Rs 50 lakh and Rs 1 crore, 15 per cent (Rs 1-2 crore), and 25 per cent (Rs 2-5 crore).
Those earning above Rs 5 crore and are in the new income tax regime pay a 25 per cent surcharge, while those under the old tax regime pay a surcharge at a 37 per cent rate.
According to estimates by independent economists, the GST rate cut and lower income tax collections are likely to cost the exchequer around Rs 2 lakh crore in the current fiscal. Any additional source of revenue in FY27 could help the government in additional allocations towards defence and other … ​Latest News [ SOBAN NEWS: International and National ]
