New Delhi: The government is mulling to recoginise top income taxpayers with an invitation to tea with the prime minister or the finance minister, according to a report. The idea is to encourage taxpayers to contribute more willingly in case the government needs to mobilise more revenue, a source told the paper.
The incentive could be announced during Budget 2019 by the newly-elected government, to be presented on July 5. The income tax department already issues certificates of appreciation to those who pay their taxes regularly. A committee working on revamping the Income Tax Act is likely to submit its report at the end of July. Tax reforms will be a crucial part of the National Democratic Alliances’s (NDA) budget, which will be presented by Finance Minister Nirmala Sitharaman.
Individuals who earn over Rs 10 lakh per annum are required to pay 30 percent of their income as tax. Those who earn between Rs 50 lakh and Rs 1 crore per annum are required to pay a surcharge of 10 percent while those who earn above Rs 1 crore pay a surcharge of 15 percent. Domestic companies with an annual income of more than Rs 1 crore but less than 10 crore pay a surcharge of 7 percent while foreign companies pay 2 percent. The surcharge for business earning above Rs 10 crore is 12 percent for domestic entities and 5 percent for foreign companies.
Article source: https://www.freepressjournal.in/business/pm-may-invite-top-taxpayers-to-tea/1539130