Senior I-T official calls for widening income tax net, scope of taxing super-rich

The ambit of income tax needs to be increased to bring in more people within its fold besides widening the scope of taxing the super-rich category, according to a senior official.

"I think the tax base (in the country) should be increased," the Income Tax Department's Principal Chief Commissioner for West Bengal and Sikkim CL Denzongpa told IANS on the sidelines of a CII event in Kolkata.

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Denzongpa said only three per cent of the country's population of over 1.2 billion is enrolled with the income tax department of which half are tax payers.

Denzongpa said the state's earnings will increase if the tax base is amplified.

"The super-rich tax also needs to be widened," he added.

The Union Budget for 2015-16, which was tabled in the Parliament on February 28, imposes an additional two per cent surcharge on tax for individuals whose annual income is Rs 1 crore or more.

Besides individuals, the super-rich category also includes Hindu Undivided Families, firms, cooperative societies and local authorities.

Finance Minister Arun Jaitley, in his Budget speech, had indicated that the government expects to raise Rs 9,000 crore from the two per cent additional surcharge.

According to the tax official, the super-rich class of tax payers would not be hit the hardest in case of a tax hike.

In 2013-14, the then Finance Minister P Chidambaram had levied a 10-per cent surcharge on taxable income of Rs 1 crore and above.