Tax officers suggest 40% tax on super-rich to fund virus fight

  • The suggestions are part of a paper titled ‘Force’, which stands for ‘Fiscal Options & Response to the COVID-19 Epidemic’, submitted by the Indian Revenue Service (IRS) Association to CBDT (Central Board of Direct Taxes) Chairman P C Mody.
  • Tax relief should be restricted to honest and compliant taxpayers, especially those filing returns on time as there have been many instances of non-filing of returns, increase in non-deductions and withholding of TDS apart from rising under-reporting of tax liabilities through bogus loss claims.
  • Some of the short term measures suggested in the paper include a super-rich tax by raising the highest slab rate to 40 per cent for those with an income above Rs 1 crore from 30 per cent and re-introduction of wealth tax for those with over Rs 5 crore annual income.
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