Income Tax Return: Currently two tax slabs exist in the country. According to those tax slabs, people’s income is taxed. There are different tax slabs for different income groups. On the other hand, in general, income of more than Rs 2.5 lakh per annum starts being taxed.
Income Tax Slab: People do different things to earn. At the same time, people earn through employment and business. People also have to pay tax on this income. Every year people also have to pay income tax. If someone’s income in a year is taxable, then he also has to pay tax. But many types of exemptions are also available while paying income tax. Even if your income is taxable, you can avail this exemption and save tax as well.
Income tax
Actually, currently two tax slabs exist in the country. According to those tax slabs, people’s income is taxed. There are different tax slabs for different income groups. On the other hand, in general, income of more than Rs 2.5 lakh per annum starts being taxed. However, exemption can also be obtained on income of Rs 2.5 lakh to Rs 5 lakh annually. There are two tax slabs in the country, which include New Tax Regime and Old Tax Regime. In both the tax systems, there is a provision to pay tax at different rates on different incomes. However, in both the tax slabs, people initially get rebate as well.
Income Tax Slab
If a citizen below 60 years of age files tax according to Old Tax Regime or a citizen of any age files tax according to New Tax Regime, then he has to pay income tax of Rs. 2.5 lakh per annum to 5 lakh. 5% income tax has to be paid on annual income of Rs. However, a person with net taxable income less than or equal to Rs 5 lakh gets tax rebate under Section 87A, that is, such a person will not have to pay any tax in the New Tax Regime or Old Tax Regime up to an income of Rs 5 lakh.
Income Tax Slab Rate
Section 87A is a legal provision that allows tax exemption under the Income Tax Act of 1961. The section, which was inserted through the Finance Act of 2013, provides tax relief for individuals with income below a specified threshold. Section 87A provides that any person who is resident in India and whose income does not exceed Rs.5,00,000 is eligible to claim the rebate. Thus complete tax exemption is available to individuals having total taxable income less than Rs.5 lakh. This exemption is applicable only to individuals and not to companies etc. Also its exemption is calculated before adding health and educational cess of 4%.
Income Tax Return
Section 87A was introduced in the Finance Act 2003 which was changed from time to time. At present, an individual taxpayer, who is a resident of India for the purpose of income tax and his annual income does not exceed Rs.5 lakh, can get a rebate of Rs.12,500 in income tax. The amount of tax to be made on an annual income of Rs 5 lakh is also Rs 12500. In such a situation, with the help of this rebate, the entire income tax of the people is waived up to Rs 5 lakh. However, the right to claim exemption under section 87A is completely lost if this limit is exceeded.
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