Following the implementation of the new Finance Act 2023, government has started imposing Super Tax on higher-income companies and individuals.
The income slab for the super tax has been increased from 300 million to 500 million. 10% super tax has been imposed on annual income exceeding 500 million rupees. Banking companies and major industries will also be subjected to 10% super tax on income exceeding 300 million rupees.
According to the Finance Bill, the sectors of airlines, automobiles, breweries, cement, chemicals, cigarettes, tobacco, fertilizers, iron and steel, LNG terminals, oil marketing, oil refineries, petroleum, gas, pharmaceuticals, sugar, and textiles have been slapped with a whopping 10% super tax.
Companies earning between 400 to 500 million rupees annually will be subject to an additional 8% tax, those earning between 350 to 400 million rupees will pay 6%, those earning between 300 to 350 million rupees will pay 4%, those earning between 250 to 300 million rupees will pay 3%, those earning between 200 to 250 million rupees will pay 2%, and those earning between 150 to 200 million rupees will pay an additional 1% tax. Companies earning up to 150 million rupees annually will be exempted from the super tax.