Income Tax Slabs: Big announcement regarding income tax slabs
Finance Minister Nirmala Sitharaman made a big announcement regarding income tax. Income tax rates in India have been changing over time, depending on economic development and the needs of the population.
Finance Minister Nirmala Sitharaman made a big announcement regarding income tax. Now there will be no tax up to Rs 12 lakh. Income tax rates in India have been changing over time, which are according to economic development and population needs. The increase or decrease in these rates has a direct impact on the general public, due to which it is necessary to ensure that the tax system is fair for all sections.
The tax brackets under the new regime will look like this:
Rs 0-4 lakh — Nil
Rs 4-8 lakh — 5%
Rs 8-12 lakh — 10%
Rs 12-16 lakh – 15%
Rs 16-20 lakh — 20%
Rs 20-24 lakh — 25%
Above Rs 24 lakh — 30%
When and how much did the tax rate change
1. 1997-98: The first major hike
In 1997, the then Finance Minister P. Chidambaram made significant changes to the income tax rates. This year, income above Rs 5 lakh was taxed at 40%, the highest at that time.
2. 2009-10: Inclusion of surcharge
In the financial year 2009-10, the government abolished the surcharge on personal income tax. However, in 2010-11, a surcharge of 10% was imposed on income above Rs 10 lakh.
3. 2014-15: New tax regime
In 2014, the Narendra Modi government introduced the new tax system. This year, some changes were made in the income tax slabs. There was no tax on income up to Rs 2.5 lakh, but income from Rs 2.5 lakh to Rs 5 lakh was taxed at 10% and income from Rs 5 lakh to Rs 10 lakh was taxed at 20%.
4. 2018-19: Health and Education Cess
In 2018, the government increased the health and education cess to 4%. This put an additional financial burden on the higher income group. Apart from this, new tax slabs were also implemented from this year.
5. 2020-21: Impact of COVID-19
During the COVID-19 pandemic, the government deferred some taxes as part of relief measures, but despite this, tax rates for higher income groups remained stable.
6. 2021-22: Striving for Stability
This year too, the government kept the tax rates stable. However, under some special provisions, tax rates were increased for the higher income group.
What has happened so far (2024-25)
At present, in the new tax regime, there is no tax on up to Rs 3 lakh. At present, 5 percent tax is levied on income from Rs 3 to 7 lakh. At present, 10 percent tax has to be paid on income from Rs 7 to 10 lakh. At present, 15 percent tax is levied on income from Rs 10 to 12 lakh.
