Government may reduce surcharge levied on income group of Rs. 50lakh to 1 Cr.

New Delhi [India], Feb. 6 (ANI): Central Board of Direct Taxes (CBDT) indicated that the government may relax budget proposal of 10 percent surcharge on individuals who earn between Rs. 50lakh and Rs. one crore annually.

"The income tax department has got some suggestions on lowering the surcharge of 10 percent announced in the Budget. One suggestion is to reduce the surcharge on income between Rs. 50 lakh to Rs. one crore annually to 5 percent," said Sushil Kumar Sahai, Member, CBDT, at a post-budget interaction organised by the Confederation of Indian Industry (CII), on Monday.

Sahai, however, clarified that he is not giving any assurance as the provision of surcharge exists in the category of people earning more than Rs. one crore. Currently, surcharge of 15 percent is applicable on earnings more than Rs. one crore annually.

"My personal view is that if things materialise and if the Finance Minister feels that we may have some leverage then it may be done. But as per the present scenario, there is no question of tinkering with the surcharge rate that has been announced," added Sahai.

On February 3, 2017, Finance Minister Arun Jaitley had ruled out a rethink on the Budget proposal to levy a surcharge of 10 percent, as expressed in an event organised by CII.