Budget 2026: Experts Warn Against Higher Surcharge on Super Rich, Fear Capital Flight

• Tax experts advise against increasing income tax surcharge on the 'super rich' or reintroducing wealth tax in Budget 2026-27.
• Such measures could prompt high-income individuals to relocate to countries with lower taxes, impacting India's economy.
• Current surcharges range from 10% to 37% depending on income slab and tax regime, with the highest for those earning over 5 crore rupees under the old regime.
• Increasing taxes on high-income individuals risks losing those who create industry and employment, emphasizing the need for balanced taxation.
• The government reduced the highest surcharge rate from 37% to 25% for incomes over 5 crore rupees in Budget 2023, making a quick reversal unlikely.

Why It Matters: Avoid higher surcharges on the super rich to prevent capital flight and maintain economic stability.