India’s tax system involves many different types of taxes and one of them is wealth tax (a.k.a. net worth tax, capital tax or equity tax). The government abolished wealth tax as announced in the budget 2015. In its stead, the government decided to increase the surcharge levied on the ‘super rich’ class by 2% to 12%. Super rich are persons with incomes of Rs.1 crore or higher and companies that earn Rs.10 crores or higher. The abolition was a move to do away with high costs of collection and also to simplify the existing tax structure thereby discouraging tax evasion.
