A Detailed Information On What Type Of Income Tax In India Are Applicable?
Income tax in India is the major source of revenue for the Government to meet its responsibilities to its citizens. To service the needs of the second populated country in the world is not an easy task. Apart from the revenue, it needs an ideal administration of the revenue and its redistribution to the citizens. The constitution of India by Article 265 under Section 10 (1) of the Income Tax Act, 1961 enabled the government to collect taxes by the Income Tax authorities. It is under the supervision of CBDT or the Central Board of Direct Taxes of the Ministry of Finance.
ü How Is The Income Tax In India Currently Fixed?
The budget presented by the Finance Minister of the Union Government of India in the parliament fixes the income tax for the next financial year i.e. April 1st to March 31st next year. The members of the parliament who represent the entire nation approve the budget along with it the fixation of the income tax in India for the next financial year. This fixation changes every year according to the financial conditions of the Government treasury, expenditure and the financial status of the citizens.
ü What Is The Current Fiscal Year Income Tax In India?
The last budget was presented in the parliament on February 1st, 2018 and it imposed the following percentage slab for the collection of income tax:
The percentage slab is as follows :
- Income above 10 lakhs – 30 %
- 5-10 lakhs – 20 %
- 2.5 to 5 lakhs – 5 %
Below 2.5 lakhs and agricultural income does not incur any income tax
How Many People Pay Income Tax In India?
Out of the 135 crores of Indian citizens only 2.05 crores of people or just 1.7 percent citizens pay income tax in India. Hope this shared information will help you in respect of increasing your knowledge regarding income tax.