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Taxes in India – Current Income Tax Slab

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Tax Slab As Per Income

Taxation is a mandatory commitment to government income and an important aspect of encouraging the country’s socioeconomic improvement. The tax money is utilized to furnish the citizens of the country with essential facilities and infrastructure. The Indian Law gives the Government of India the authority to collect taxes. India’s taxation system is three-tiered, comprising national, state, and local municipal agencies.

Usually in India, the taxes are levied under 2 categories, these are:

  • Indirect Taxes
  • Direct Taxes

Indirect Taxes

Indirect taxes are fees collected from the people indirectly. These are frequently levied in the form of products and services. The vendor incorporates these taxes into the pricing that is subsequently recovered by the appropriate government agencies.

Sales tax, and GST, are a couple of the key indirect taxes examples.

Direct Taxes

These are taxes placed on individuals and paid exclusively to the government. The Central Board of Direct Taxes (CBDT) is in charge of overseeing the administration of this taxation. Income taxes, property taxes, gift taxes, and so on are some examples.

Income tax is the more prominent type of tax placed on citizens. This tax is levied on income generated during a fiscal year. The tax rate is established by the tax slab in effect. Hindu Undivided Family (HUF), corporations, businesses, co-operative organizations, and trusts are defined under the term “individuals” when calculating income tax.

Income Tax

According to the Income Tax Act of India, income tax is payable by all individuals, HUFs, partnership businesses, LLPs, and corporates. Individuals are taxed according to the slab structure if their revenue increases the minimum threshold level (known as the basic exemption limit)

In the Budget Announcement of 2022, no modifications to income tax slabs (both old and new tax regimes) were indicated for FY 2022-23. Ever since fiscal year (FY) 2020-21, the income tax slabs and rates have remained unaltered. Individual taxpayers would have to choose between the 2 existing tax regimes in fiscal years 2021-22 and 2022-23: the present or old tax regime and the newer, with concessions minus the rebates.

Here are the most recent income tax slabs and rates for fiscal years 2021-22 (for ITR filing) and 2022-23 (for tax-saving).

Income Tax Slab Existing Regime Slab Rates for FY 21-22  New Regime Slab Rates
Individuals < 60 years of age & NRIs Individuals & HUF > 60 to < 80 years Individuals & HUF > 80 years Applicable for All Individuals & HUF
₹0.0 – ₹2.5 lakh        
NIL NIL NIL NIL
₹2.5 – ₹3.00 lakh   NIL NIL 5% (Tax rebate u/s 87a is available)
₹3.00 – ₹5.00 lakh 5% (Tax rebate u/s 87a is available) 5% (Tax rebate u/s 87a is available) NIL
₹5.00 – ₹7.5 lakh 20% 20% 20% 10%
₹7.5 – ₹10.00 lakh 20% 20% 20% 15%
₹10.00 – ₹12.50 lakh 30% 30% 30% 20%
₹12.5 – ₹15.00 lakh 30% 30% 30% 25%
Greater than ₹15 Lakh 30% 30% 30% 30%

 

Income Tax Saving Investment | How To File Income Tax Return | How To Save Income Tax In | What Is Income Tax Act 80G | What Is Income Tax Section 54 Act | Section 24 Income Tax Act | Professional Tax in India | How To File Income Tax Return | Current Income Tax Slab | RBI Monetary Policy

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