Finance Minister Nirmala Sitharaman on Wednesday defended the increase in income-tax surcharge on the super-rich, saying this is a small contribution to the nation building.
Responding to Budget debate in Lok Sabha, she said economic growth was much a focus of her Budget as was national security.
She said the government was committed to continuing on the path of fiscal consolidation without compromising on public expenditure.
Meanwhile, CBDT Chairman PC Mody on Wednesday said FPIs and AIFs can opt for a corporate structure to avoid paying additional surcharge.
An analysis by the Finance Ministry showed about 40 per cent of foreign portfolio investors (FPIs) — those that follow the trust structure — will be impacted by the higher surcharge levied in the budget. The majority 60 per cent of FPIs that use the corporate structure will not be impacted, Economic Times reported.