Income Tax

As the name suggests it’s a tax levied on incomes or earnings by companies & individuals. The government imposes this tax to provide better infrastructure & facilities to citizens also for some Government’s own activities. Income tax needs to be filed every year by individuals & entities. The only sector exempted from income tax is agriculture.

The government has set up income slabs to categorize tax percentage for every income groups. The minimum percentage of income tax is 0% and highest percentage is 30%. Taxpayers need to file income tax return file every year between March & April. Income tax is a way of distributing wealth uniformly among all groups/class of people.

Here are income tax slab details

Income tax Slab for Individuals & HUF below 60 years old Tax Rate
Income up to Rs.2,50,000 No Tax
Income within Rs.2,50,000 – 5,00,000 5%
Income within Rs.5,00,000 – 10,00,000 20%
Income above Rs.10,00,000 30%

 

Income tax slab for individuals at the age of 60 & more but less than 80 years Tax Rate
Income up to Rs.3,00,000 No Tax
Income within Rs.3,00,000 – 5,00,000 5%
Income within Rs.5,00,000 – 10,00,000 20%
Income above Rs.10,00,000 30%

 

Income tax slab for individuals at the age of 80 & more Tax Rate
Income up to Rs.5,00,000 No Tax
Income within Rs.5,00,000 – 10,00,000 20%
Income above Rs.10,00,000 30%

 

The net tax will be payable after adding CESS & surcharge if applicable under section 80 (C) to 80 (U)

Surcharge of 10% levied on income value is above Rs.1Crore and 15% levied on income above Rs.10Lakhs and below Rs.1Crore.

Education cess of 3% is also levied on net income at the time of calculating the gross taxable amount.

 

 

 

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