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Azim Premji of Wipro wanna be Warren Buffett of India

Warren Buffett had a hidden agenda when he suggested that wealthy persons like him should be taxed more and obliged Obama by saving him from a fiscal cliff crisis. You can read Warren Buffett Tax super rich proposal here.

However he had an understanding with Obama where he got lovely sweet deals in return for proposing such a tax where super rich like him should be taxed more. Now it appears that Azim Premji has also proposed same to Chidambaram to bring Indian economy on track.

However before jumping the gun one must know the pitfalls of taxing the super rich:

  • The amount being recovered extra by taxing super rich may not make much of a difference as number of people having more than 10 Lakh income is just a small percentage. Have a look at below screenshot which shows the percentage of people in higher tax bracket i.e. 10 Lakh and above is a small proportion.
  • This act of taxing super rich will increase tax evasion.

Income Tax

Verdict : How to get max tax?

  • Widen the tax network.
  • Increase strength of income tax deptt

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