Taxing the rich - 10% Dividend tax, 15% Surcharge, TDS of 1% on luxury cars

Q.  Which of the following are true regarding taxing the rich?

1) Additional 10% tax on dividends in excess of Rs. 10 lakh per annum
2) Surcharge on persons decreased to 12% from 15%
3) TDS at 1% on purchase of luxury cars exceeding value of Rs. 10 lakhs.
- Published on 21 Mar 16

a. 1, 2, 3
b. 2, 3
c. 1, 3
d. None of the above

ANSWER: 1, 3
 
  • Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of Rs. 10 lakh per annum.
  • Surcharge to be raised from 12% to 15% on persons, other than companies, firms and cooperative societies having income above RS. 1 crore.
  • Tax to be deducted at source at the rate of 1 % on purchase of luxury cars exceeding value of Rs. ten lakh and purchase of goods and services in cash exceeding Rs. two lakh.
  • These fall under additional resource mobilization for agriculture, rural economy and clean environment

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