Being a citizen of the country, every citizen has his own duty. One of these duties is to contribute to the progress of the country.
All kinds of development and security works like roads, electricity, airport etc. continue continuously in the country. Money is required from time to time for these works. This money is supplied by the government by collecting taxes from the traders and common citizens. One of these taxes is income tax.
What is the income tax limit?
Tax is collected from the common citizens according to the amount of their income for development, social and protective works by the government. According to this amount, the recovery is called income tax limit or income tax slab.
Lower income tax limit
But before collecting income tax, the government takes care that the primary needs of the citizens are met first. Tax should be collected only on the income above him. For this purpose, a minimum income limit of income is fixed before charging income tax. This means that no income tax can be charged from people earning less than that. This is called lower income tax limit.
Higher income tax limit
Similarly, a maximum limit is also fixed for collection of income tax, that is, income tax can be recovered up to a certain limit by making income on more than this amount. One of the ideas behind fixing the maximum income tax percentage is that people with high income should not get discouraged. This is called the upper limit of income tax.
At present, the minimum income limit is Rs 2.5 lakh, that is, no income tax of any kind will have to be paid on annual income less than this. Similarly the maximum tax limit is 30%. That is, no matter how much income tax you make annually, you cannot be charged more than 30% of income tax. Between these two limits, a tax slab has been set by the government, which keeps on changing every year.
The income tax slabs for this year are as follows:
- Rupee. 2.5 to 5 lakh- 5%
- Rupee. 5 lakh and above Rs. Up to 7.5 lakh- 10%
- Rupee. 7.5 lakh and above Rs. Up to 10 lakh- 15%
- Rupee. 10 lakh and above Rs. Up to 12.5 lakh- 20%
- Rupee. 12.5 lakh and above Rs. Up to 15 lakh- 25%
- Above ₹15 Lakh – 30%
