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29 February 2016

India's 2016/17 Budget proposals increase marginal rate of tax for high earners

The Finance Minister of India presented the Finance Bill 2016 ("the Bill") in the Indian Parliament on February 29, proposing changes to tax law for the income year starting April 1, unless specifically mentioned otherwise. The rate of surcharge for taxpayers with income over INR 10,000,000 (USD 145,985) has been increased to 15% taking the effective tax rate for this category of taxpayer to 35.535% from the existing rate of 34.608%. There are no changes to the tax bands or other rates for individual taxpayers.

A Tax Alert prepared by Ernst & Young's Human Capital Group, and attached below, provides additional details.

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Document ID: 2016-0404

 

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