Modi Government and All About Income Tax Slabs In A Detailed Manner
The Modi government is known for taking the most undetermined and risky decisions when it comes to the ruling of the country for the betterment of its people, however, they have made it quite a mediocre win against the last ruling party. With the Income-tax drafted over 60 years, back many of the prominent ministers think that the act needs to be re-drafted so that a more realistic and holistic approach to the same can be achieved. The structure of the entire taxation system has been the same since the last 20 years with is actually not in tune with the changing trends of the workforce and the savings process also. There are a number of recommendations proposed, however, taking them to the toll would require some time for the government.
The taxation rates were revised by the finance minister Arun Jaitley bringing down the tax rate from 10% to 5% of the income tax slab of 2.5 lakhs to 5 lakhs. The rebate was also reduced to 2500 INR from 5000 INR for those earning between 2.5 lakhs to 3.5 lakhs. This reduces the tax burden for those earning up to 3 lakhs (the majority of Indians fall under this category).
The income tax slabs for various income ranges
- For annual income ranging up to5 lakhs, the income tax rate charged is nil
- For annual income between 2.5 lakhs to 5 lakhs, the income tax charged is 5%.
- For annual income range between 5 lakhs to 20 lakhs, the income tax charged is 20%
- For annual income greater than 10 lakhs, the income tax charged is 30%
- cess charged is 3% of total calculated income tax
The income tax slabs have been unchanged for financial years 2017 and 2018. The Union Budget of 2019 will play a major role owing to the fact that the Union elections would be around the corner than.