The Finance Bill 2013-14
proposes a surcharge of 10 per cent on persons whose taxable income exceed Rs.
1 crore per year. This will apply to individuals, HUFs, firms and entities with
similar tax status. Presenting the Union Budget in the Lok Sabha today, the
Finance Minister Shri P.Chidambaram said that he also proposes to increase the
surcharge from 5 per cent to 10 per cent on domestic companies whose taxable
income exceeds Rs.10 crore per year. In the case of foreign companies, the
surcharge will increase from 2 per cent to 5 per cent.
In all other cases, such as dividend
distribution tax or tax on distributed income, the current surcharge of 5 per
cent is being increased to 10 per cent. The additional surcharges will be
imposed for only one year, i.e., financial year 2013-14. The education cess for
all taxpayers shall continue at 3 per cent. The Finance Minister said that he
expects the relatively prosperous to bear a small burden for one year.