Income tax rate for different incomes in India?
In a sovereign state like India, income tax to be paid by the individual taxpayers is levied depending on the slab systems wherein different tax rates have been set for different slabs on the basis of the income earned by the individual. As the annual income of the taxpayer increases, so does the income tax rate for their income shifting them into a different slab.
Significance Of Slab Changes –
These slabs change in the release of every year’s annual budget during the start of the year where the income tax rate for different incomes is also set. For example, the income tax rate for the year 2018 remains the same as for the year 2019 and there was no change in the income tax levied from the annual income of the person. Let’s check out more about it going through the below mentioned categories and facts.
The Income Tax Rate For Different Incomes Depends On The Three Categories Of The Individual Taxpayers:
- first is the individuals below the age of 60 years including both the residents and the non-residents as well
- second is the resident senior citizens of the country who are between the age group of 60 years and below 80 years
- third is the resident super senior citizens of the country above the age of 80 years
The Income Tax Rate For Individual Taxpayers And HUF For The Financial Year 2018-19 Is:
- For annual income upto 2.5 lakhs, there is no tax levied by the government
- For annual income between 2.5 lakhs and 5 lakhs, the tax deducted is 5% and health and education cess is 4% of the income tax
- For annual income between 5 lakhs to 10 lakhs the tax rate is 20% with 4% income tax as education and health cess
- For annual income more than 10 lakhs the tax rate is 30% with 4% of income tax as education and health cess