Finance minister P Chidambaram dismissed fears that the 10% surcharge on the super-rich (people with incomes over Rs. 1 crore a year) imposed in the budget will prompt an exodus of the rich from India.
“... Nobody will move anywhere, I assure you,” he told PTI in an interview on Sunday. “Nowhere in the world can you afford to employ so many domestic helps. Wellness does not only come from wealth, it comes from a host of other services that we have in place.”
Sounding a warning to income tax defaulters, Chidambaram ruled out amnesty. “Best case I can make is to tell people ‘please don’t hide your income’. Just admit your income and pay taxes and be a proud citizen,” he said.
The minister is also hopeful that the BJP will support key financial sector legislation and the bills on insurance and pension sectors would be passed in the current budget session of Parliament.
While the bill on the insurance sector seeks to raise the foreign investment cap from 26% to 49%, the pension bill also aims to increase it to the same level, among other things.
The FM said India’s first all-women bank will start operations from November.