Understanding Income Tax in India
Income Tax is a percentage of your income that you pay to the government each year. This money is used by the government to develop civic infrastructure and for overall development of the country. The amount that you pay as income tax depends on your income, which is categorized into different income groups or tax slabs. Each slab has a different percentage of income tax; the higher the slab the more income tax that is payable. The provisions for income tax is governed by the Income Tax Act 1961.
The slabs and the respective percentage of income tax payable are given below. These are the current Income Tax Slabs and Rates for Financial Year: 2020-21.
