As per the existing rates an individual who is below the age of 60 is exempted from tax payment if his/her total income for the last financial year was below Rs 2.5 lakh.
As the deadline to file the Income Tax returns for the last fiscal comes to an end on July 31, citizens across the country are rushing in to make a correct assessment on the payable amount. Here is a look at various slabs, deductible amount and rates that will help you in carrying out the process smoothly.
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Tax slab for non- senior citizens
As per the existing rates an individual who is below the age of 60 is exempted from tax payment if his/her total income for the last financial year was below Rs 2.5 lakh. If the income is between Rs 2.5 lakh and Rs 5 lakh, then the tax rate would be five percent. Income between Rs 5 lakh and Rs 10 lakh is taxed at 20 percent and those above Rs 10 lakh at 30 percent.
Tax slab for senior citizens
For those, who belong to the 60-80 age group, the income below Rs 3 lakh is exempted from taxation. If the income is between three and five lakh then the tax rate would be five percent. For income between five to 10 lakhs, the tax rate would be 20 percent while the rate would be 30 percent for income above 10 lakhs.
Tax slab for super senior citizens
For citizens above the age of 80, there would be no tax for income up to Rs 5 lakh. For those coming under the five to 10 lakh category, 20 percent tax payable and for income above ten lakhs, the tax rate would be 30 percent.
Other charges and exemptions
There are three further factors that should be taken in to account while calculating the tax returns. This will include the ‘Health and Education Cess’ that is added to the taxable amount at the rate of 4 percent. Then there is a surcharge for those with a high rate of income. This will be charged at the rate of 10 percent for income between Rs 50 lakh and Rs 1 crore. And for those with income above one crore, the surcharge would be 15 percent.
Besides this, there will also be a deduction in the form of rebate that comes under Section 87A. Resident individuals with income up to Rs. 3.5 lakh will benefit from this rebate. The amount of rebate will be 100 per cent of income tax or Rs. 2,500, whichever is less.
First Published: IST