What is Income Tax Slab?
Indian Income Tax System follows Income Tax slabs for levying the tax on the income of an individual or non-individual. Various slabs are accounted for.
In India, the income tax is charged on the income earned. This tax applies to the range of income, which is called Income Tax Slabs. The slabs of income tax keep changing from year to year. The Finance Minister announces the slab rates of Income Tax in the Union Budget each year. The Income Tax Slabs can be categorised into four slabs,
- Income is chargeable to Nil rate of Tax;
- Income is chargeable to 10%;
- Income is chargeable to 20%; and
- Income is chargeable to 30%.
Surcharge (EC) and secondary and higher secondary education cess (SHEC) are also charged over and above the tax.
The income tax slab rate can be mainly bifurcated as under:
- By Gender
- Male; and
- By Age
- Resident; and
- Non-resident in India.
- For Hindu Undivided Family (HUF)/ Association Of Person (AOP)/ Body Of Individual (BOI)/ Artificial Judicial Person (AJP)
- On Non-individuals
- Partnership Firms or LLPs;
- Domestic Company;
- Foreign Company;
- Co-operative Societies; and
- Local Authorities.