The income tax slabs for a financial year are announced by the finance minister every year in the Union Budget. The income tax slabs and rates announced are applicable for the upcoming financial year. Usually, the finance minister makes an announcement in the month of February (when the budget is announced) and once the law is passed by the parliament, it becomes effective from April of that calendar year. An income tax is a sum that every Indian citizen, whether an individual or a business, is required to pay to the Indian income tax authorities for the fiscal year that begins on April 1 and ends on March 31 of the following year. The rate is determined by the government.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
Broadly taxes are divided into two categories:
1. Direct Taxes
2. Indirect Taxes
Goods and Services Tax (GST) is an indirect tax (or consumption tax) levied in India on the supply of goods and services. It is levied at every step in the production process.
The tax is divided into five slabs — 0 per cent, 5 per cent, 12 per cent, 18 per cent, and 28 per cent.
Although GST is collected by the central government, taxes on petroleum products, alcoholic drinks, electricity are separately collected by the state government.
Indian Income tax levies tax on individual taxpayers on the basis of a slab system. Slab system means different tax rates are prescribed for different ranges of income. It means the tax rates keep increasing with an increase in the income of the taxpayer. This type of taxation enables progressive and fair tax systems in the country. Such income tax slabs tend to undergo a change during every budget.These slab rates are different for different categories of taxpayers. Income tax has classified three categories of “individual “taxpayers such as:
China is set to launch the Chang'e-6 lunar probe on a round trip to the…
As travelers seek inspiration for their next adventure, the world offers a plethora of stunning…
Himachal Pradesh, nestled in the lap of the majestic Himalayas, is a paradise for nature…
The Defence Research and Development Organisation (DRDO) has achieved a significant milestone in enhancing India's…
Zimbabwe has launched a new currency called the ZiG (short for Zimbabwe Gold) in an…
The Uttarakhand government has suspended the manufacturing licenses of 14 products from Patanjali Ayurved, founded…