Capital gains tax likely to increase for high net worth individuals

High Net-Worth Individual, popularly known as HNI, is not defined anywhere, but in common parlance generally refers to a class of individuals who have investments of more than There is a qualified surplus. Net worth of 5 crores or more 25 crores. If we look at the Income Tax provisions, then by Assessment Year (AY) 2023-24, individuals earning total taxable income of above 5 crores were subject to a brutal tax rate of 42.74%. As the Finance Minister pointed out in his budget speech, it is the highest in the world. To make the Indian tax regime more competitive, surcharge is applicable for individuals whose gross taxable income is higher 5 crore has been reduced from 37% to 25% under the new tax regime. The change brings down the top tax rate to a more attractive 39%. However, before HNIs rejoice, here are some other amendments proposed in the budget that may increase their tax liability significantly.