Ideas & Insights
Paywings's perspective on Payroll & Related
Below table represents the various slabs of income tax in India based on earnings.
|Income Slabs||Tax Rates|
|i.||Where the total income does not exceed Rs. 2,00,000/-.||NIL|
|ii.||Where the total income exceeds Rs. 2,00,000/- but does not exceed Rs. 5,00,000/-.||10% of amount by which the total income exceeds Rs. 2,00,000/-.
Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A – 10% of taxable income upto a maximum of Rs. 2000/-.
|iii.||Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.||Rs. 30,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.|
|iv.||Where the total income exceeds Rs. 10,00,000/-.||Rs. 130,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.|
Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.
* Abbreviations used :
NRI – Non Resident Individual; HUF – Hindu Undivided Family; AOP – Association of Persons; BOI – Body of Individuals; AJP – Artificial Judicial Person
Note: Income Tax slabs and rates are liable to change as per directive from Indian Government.