Finance Ministry rejected the idea of higher tax for super-rich

• Finance Ministry rejected the idea of a higher tax for super-rich
• Indian Revenue Service Organisation (IRS) suggested an additional tax to super-rich last Saturday
• Centra Government denied and such recommendations and said no such report asked from IRS
• Does the IRS officials allowed to do such recommendations without government consent
• Whats harm in asking for additional tax when PM Modi is asking for a donation in PM Care
• IRS also proposed 4% onetime cess under health and education cess for higher income tax

Day after the recommendation to increase income tax for super-rich by IRS. The Finance Ministry on Sunday rejected the idea and ordered an inquiry into the matter.

In a report on Saturday, the Indian Revenue Service Organisation (IRS) suggested raising taxes of very rich individuals in India. 

In reply to this report, the Central Board of Direct Taxes (CBDT) said that the IRS or any group of officials mentioned in the report had never been asked by the government to prepare the report.

IRS officials make their views public without permission regarding higher tax for super-rich

The CBDT said in a statement that it had never asked the IRS Association or their officials to make such a report. The authorities have not taken any orders before expressing their personal views and suggestions in public. This is a violation of public servant behaviour rules. 

Necessary investigation is being started in this case. Sources in the Finance Ministry said that the authorities concerned would have to give an explanation before the CBDT chairman for misconduct. The views of the IRS does not reflect the views of the Ministry or the CBDT.

Also Read: Corona business impact started with job loss and pay cuts in India

Government still trying to provide maximum relief to corporates and super-rich

A source close to this report said that the Finance Ministry is making every effort to provide relief in the current crisis. They are trying to increase cash in the system to make life easier for the people. 

Following criticism from the government, the IRS said in a tweet. They said that the Fiscal Options and Response to COVID-19 Epidemic (Force) report prepared by 50 young IRS officers.

They sent the report directly to CBDT for consideration and this does not reflect the views of other officials from the IRS.

The IRS suggested to increase the top income tax slab to 40 per cent

Among other things, this report suggested that the super-rich with assets above Rs 5 crore should be more taxed. The report suggests raising taxes on super-rich for 3 to 6 months in two ways.

The first suggestion was to increase the highest tax slab to 40 per cent for those with taxable income more than one crore annually. The second suggestion was to levy a tax on those with assets above five crore.

IRSA also suggested to apply 4 per cent one-time COVID-19 relief cess on taxpayers

While suggesting a one-time Covid-19 relief cess, IRS said that more people will come under the ambit of cess rather than a surcharge.

The cess will be levied on all taxpayers and it will lead to higher tax collection. The proposed cess will include 2 per cent health cess and 2 per cent of education cess.

One-time 4% cess can be imposed in addition. It may be named COVID-19 Relief Cess. This will help in raising resources for relief work related to coronaviruses.