In India all individuals who all are earning money have to pay tax on the basis of revenue he/she is getting. There are different criteria for men, women and senior citizens for paying toll decided on every FY in budget.
Income tax in India is a major form of tax, which is imposed by the Government of India. The tax is levied in accordance with the Income Tax Act, 1961, which was passed by the Parliament of India.
An Overview
In India, revenue tax is considered as a progressive form of toll, which means it increases when the amount of income increases and it goes down when your income reduces. In order to work out income tax in India, the following heads of income are taken into consideration:
From business and profession
From house and property
From capital gains
From salaries
From other sources
Nevertheless, the Income Tax Act, 1961 is supposed to be revoked and substituted by a new act, which merges the regulations associated with income and wealth tax. The new recommended statute is known as the Direct Taxes Code Act 2010. This new legislation is aimed to come into existence from April 1, 2011.
Income Tax Rates in India
As laid down by the Income Tax Act, 1961, the toll is imposed on individuals, corporations, and Hindu Undivided Families (HUFs), trusts, firms, and co-operative societies.
The tax rates are laid down and modified by the Government of India through the Finance Act, commonly known as the Budget. As stipulated by the Finance Act, 2010, the toll rates for men, senior citizens, and women are as follows:
Indian men
Tax to be imposed on Amount of Income (in INR)
From 0 to 1,60,000 - Nil
From 1,60,001 to 3,00,000 - 10%
From 3,00,001 to 5,00,000 - 20%
Above 5,00,000 - 30%
Senior Citizens in India
Tax to be imposed on Amount of Income (in INR)
From 0 to 2,40,000 - Nil
From 2,40,001 to 3,00,000 - 10%
From 3,00,001 to 5,00,000 - 20%
Above 5,00,000 - 30%
Indian women
Tax to be imposed on Amount of Income (in INR)
From 0 to 190,000 - NIL
From 1,90,001 to 3,00,000 - 10%
From 3,00,001 to 5,00,000 - 20%
Above 5,00,000 - 30%
Education cess will be levied @3% on tax amount. There is no surcharge.
How to save Income Tax in India
You can save income tariff in a number of ways. Given below are some of the popular techniques of getting tax deductions:
Investing in mutual funds like Kotak Saver, HDFC Saver, TATA Saver, and UTI Equity Saver.
Paying off your home loan beforehand
Making investments in SIPs (Systematic Investment Plans)
Purchasing tax saving bonds
Investing in Post Office Schemes
Income tax in India is a major form of tax, which is imposed by the Government of India. The tax is levied in accordance with the Income Tax Act, 1961, which was passed by the Parliament of India.
An Overview
In India, revenue tax is considered as a progressive form of toll, which means it increases when the amount of income increases and it goes down when your income reduces. In order to work out income tax in India, the following heads of income are taken into consideration:
From business and profession
From house and property
From capital gains
From salaries
From other sources
Nevertheless, the Income Tax Act, 1961 is supposed to be revoked and substituted by a new act, which merges the regulations associated with income and wealth tax. The new recommended statute is known as the Direct Taxes Code Act 2010. This new legislation is aimed to come into existence from April 1, 2011.
Income Tax Rates in India
As laid down by the Income Tax Act, 1961, the toll is imposed on individuals, corporations, and Hindu Undivided Families (HUFs), trusts, firms, and co-operative societies.
The tax rates are laid down and modified by the Government of India through the Finance Act, commonly known as the Budget. As stipulated by the Finance Act, 2010, the toll rates for men, senior citizens, and women are as follows:
Indian men
Tax to be imposed on Amount of Income (in INR)
From 0 to 1,60,000 - Nil
From 1,60,001 to 3,00,000 - 10%
From 3,00,001 to 5,00,000 - 20%
Above 5,00,000 - 30%
Senior Citizens in India
Tax to be imposed on Amount of Income (in INR)
From 0 to 2,40,000 - Nil
From 2,40,001 to 3,00,000 - 10%
From 3,00,001 to 5,00,000 - 20%
Above 5,00,000 - 30%
Indian women
Tax to be imposed on Amount of Income (in INR)
From 0 to 190,000 - NIL
From 1,90,001 to 3,00,000 - 10%
From 3,00,001 to 5,00,000 - 20%
Above 5,00,000 - 30%
Education cess will be levied @3% on tax amount. There is no surcharge.
How to save Income Tax in India
You can save income tariff in a number of ways. Given below are some of the popular techniques of getting tax deductions:
Investing in mutual funds like Kotak Saver, HDFC Saver, TATA Saver, and UTI Equity Saver.
Paying off your home loan beforehand
Making investments in SIPs (Systematic Investment Plans)
Purchasing tax saving bonds
Investing in Post Office Schemes
SHARE
