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 TaxpayersThere 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 IndiaCategory 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
● 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
● 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 CessIf 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.
Click here to visit our personalized online advisor that gives you the financial expertise you need.
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.
Disadvantages of Early Retirement - What Happens When You're Not Working?
Early retirement seems to be good, many people enjoy life without working especially with extra earnings. But they are not aware about the cons. Lets explore the disadvantages of retiring early to save your retirement life.
5 Benefits of Health Insurance that Makes it a Must Have Cover
Here are the 5 benefits of health insurance that makes it a must to cover
When Should You Withdraw Money from a Mutual Fund?
In case of a sudden change in fund strategy or an underperformance scheme for more than 3-4 years, it makes sense to withdraw money.
How To Apply For Personal Loan
Applying for a personal loan has become extremely easy these days. With the increase in applicants, banks and other financial institutions have made the process very simple.