Income Tax Slab for AY 2017-18: Know your tax category
December, 28th 2017
A recent data by Income Tax department showed that out of a population of 132.4 crores, just over 2 crore Indians, or 1.7 per cent of the total population, paid income tax in the assessment year (AY) 2015-16.
The data from IT department revealed that collection from income tax in 2015-16 was Rs 1.88 lakh crore, lower from Rs 1.91 lakh crore collected in the previous year. In 2015-16, close to 82 lakh taxpayers showed zero or income less than Rs 2.5 lakh.
The two most obvious reason for lower tax collection is - tax evasion and unawarness of taxpayers.
If you are also confused about the income tax you need to pay from your earning, here we will explain income tax slabs for you to understand which tax bracket you fall into and your tax liability as per the IT norms:
If your total income does not exceed Rs 2.5 lakh, you are not liable to pay any income tax. You can file your return as zero income tax. However, if you income exceeds Rs 2.5 lakh but is less than Rs 5 lakh, you have to pay 5 per cent income tax.
Individuals earnings between Rs 5 lakh to Rs 10 lakh, will have to pay 20 per cent income tax, and those who earn above Rs 10 lakh will have to pay 30 per cent income tax.
The above tax slabs is valid only for individuals who are below the age of 60 years. The income tax slab for Senior Citizens and Super Senior Citizens are slightly different.