Union Budget 2015: Super-rich above 60 to feel heat of new 'tax'

Individuals with an annual income that exceeds Rs 10 lakh but below Rs 1 crore will be the biggest beneficiaries of the new tax proposals if they are aged below 60 years while the super-rich above this age bracket will be hit the hardest.

An analysis of the new income tax proposals reveals that an individual aged below 60 years can make an additional saving of up to Rs 24,596 a year if his or her annual income is above Rs10 lakh but below Rs1 crore.

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For senior citizens in this income bracket, savings would be a little lower at Rs 21,630.

Senior citizens above 60 years of age would have to pay an additional tax of Rs 64,550 a year if their annual income is more than Rs 1 crore.

For individuals below 60 years with annual income of over Rs 1 crore, the additional tax works out to a little lower at Rs 61,271, according to an 'impact report' prepared by consultancy major PwC for the income tax proposals in the Union Budget.

Union finance minister Arun Jaitley had announced increasing the surcharge on the super-rich to 12 per cent from 10 per cent for those individuals earning more than Rs 1 crore.

However, he has also proposed additional deductions in lieu of investment in pension and health insurance schemes.

The additional savings would be the lowest at Rs 7,210 for senior citizens in the age bracket of 60-80 years and with annual income of below Rs 5 lakh.

For individuals below 60 years in this income bracket, additional savings would be Rs 8,199.

In case of annual income of Rs 5-Rs 10 lakh, additional savings would be Rs 16,398 for individuals below 60 while the same would be Rs 14,420 for senior citizens aged 60 and above.

Further deductions of Rs 50,000 a year would be allowed for contribution made to the National Pension Scheme.