Income tax is a type of direct tax that every individual, corporate firm, HUF (Hindu Undivided Family) and even local authorities are required to pay if their income falls within the taxable bracket. The tax is levied as per the tax slabs fixed by the government.

This means that the total income tax you are required to pay in a year will depend on your earnings in the year and the tax slab you belong to. So, what are the different income tax slab rates India for individuals? Let us have a look-

Categories of Individual Taxpayers

There are currently 3 such categories under every tax slab. They are-

● Category 1- Residents and non-residents below the age of 60 years
● Category 2- Senior resident citizens between the age of 60 and 80 years
● Category 3- Super senior resident citizens above the age of 80 years

These are the different categories of income tax slab rate. Let us now check the tax slabs.

Income Tax Slabs in India

Category 1
● Income up to Rs. 2.5 L (Lakhs) in a Financial Year - Nil
● Income between Rs. 2.5L to 5.0L in a Financial Year- 5%
● Income between Rs. 5.0L to Rs. 10.0L in a Financial Year - 20% of the total income above Rs. 5.0L + Rs. 12,500
● Income above Rs. 10.0L in a Financial Year- 30% of the total income above Rs. 10.0L + Rs. 1,12,500

Category 2
● Income up to Rs. 3 L in a Financial Year - NIL
● Income between Rs. 3 L to Rs. 5 L in a Financial Year - 5%
● Income between Rs. 5 L to Rs. 10L in a Financial Year - 20% of the total income above Rs. 5 L + Rs. 10,000
● Income above Rs. 10 L in a financial year- 30% of the total income above Rs. 10.0L + Rs. 1,10,000

Category 3
● Income up to Rs. 5 L in a Financial Year - NIL
● Income between Rs. 5 L to Rs. 10 L in a Financial Year - 20%
● Income above Rs. 10 L in a Financial Year- 30% of the total income above Rs. 10 L + Rs. 1,00,000

Surcharge and Cess

If your annual income is between Rs. 50 L and Rs. 1 crore, an income tax surcharge of 10% will be applicable. If the annual income is above Rs. 1 crore, a surcharge of 15% will be applicable. Health and Education cess of 4% applies to your income tax and the surcharge.

Also, if an individual's annual income is less than Rs. 5.0L, he/she can get full tax rebate under Section 87A. There are also several tax deduction options offered by the government. Irrespective of your income tax slab, you can take advantage of these deductions to reduce your overall income tax liability.

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DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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