What are the different tax rate slabs under the income tax?

Every working professional has to pay taxes, and the topmost among the list of taxes is the Income tax. This tax is applicable to everyone who receives income in the form of pension, salary, dividends, etc. It is directly paid to the government and complies with all the conditions stated in the Income Tax Act (1961). The income tax rate slabs keep on changing as per the introduced Union Budget. The individuals and Hindu Undivided Family has to lower taxes when compared to others.

Who are considered taxpayers in the eyes of the government?

Individuals who have Indian citizenship and fall under the age group of 18-60 years are liable to pay Income tax. But in cases when a person who is aged above 60 and generates an income of more than 2.5L per annum are liable to pay taxes like other taxpayers.

The list of taxpayers consists of:

• Body of Individuals (BOI)
• Hindu Undivided Family (HUF)
• Association of Persons (AOP)
• Local Authorities
• Corporate firms & companies
• Artificial Juridicial person

Tax rate slabs under the income tax FY 2020-21

• For people with an annual income up to 2.5L, no need to pay income tax.
• For people with annual income from 2.5L-5L, 5% tax on the annual income is imposed.
• For people with annual income from 5L-7.5L, Rs. 12,500 + 10% on difference income (annual income-5L) has to be paid as income tax.
• For people with annual income from 7.5L-10L, Rs. 37,500 + 15% on difference income (annual income-7.5L) has to be paid as income tax.
• For people with annual income from 10L-12.5L, Rs. 75,000 + 20% on difference income (annual income-10L) has to be paid as income tax.
• For people with annual income from 12.5L-15L, Rs. 125,000 + 25% on difference income (annual income-12.5L) has to be paid as income tax.
• For people with annual income above 15L, Rs. 187,500 + 30% on difference income (annual income-15L) has to be paid as income tax.

These slabs are not defined on the basis of age group or gender. According to the present income tax, a person can’t claim up to 70 tax deductions on income while calculating the amount of payable taxes. For the calculation of taxes, one can take help from professionals because the tax norms keep on changing and only professionals can keep pace this the recent information. Contact Inside Tax, the best income tax consultants in Delhi and India. Their team of experts has helped numerous people in filing taxes on time.

Different Income tax forms for filing taxes

There are two modes of filing income tax. These are – online and offline. The online mode provides the taxpayer to file ITR1 and ITR4 forms. But other forms for ITR filing are only available with offline mode. All the information that you entered during filing has to be validated. Hence, one should consider taking help from professionals. So contact our team and get help in ITR filing.