The Finance Minister Arun Jaitely, for simplifying the tax regime has proposed to abolish the concept of Wealth Tax from India. In his speech, he mentioned that no person shall pay wealth tax on their wealth. Instead he announced an additional surcharge of 2% for the super rich i.e., who earn over Rs. 1 crore.

This step shall bring more tax collection as compared to the current wealth tax regime. Earlier, wealth tax provision was being avoided by not indicating their wealth properly. This tax evasion process will surely curb down as now additional surcharge will be charged on income over Rs. 1 crore and not on the wealth inherited by them.

This cunning step by Jaitely is expected to fetch government Rs 9,000 cr against Rs 1,008 currently mobilized under wealth tax.

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