Paying taxes can be a tedious process as it requires you to be well-versed with the rules and norms pertaining to how to do so. This article seeks to aid readers by providing them with an understanding of income tax slabs and the differences that persist between the Old Tax regime and the New Tax regime. As taxpayers, individuals are entitled to prescribe to either one of their choices.
What is the income tax slab?
The government of India charges an income tax applicable to sole taxpayers which is prescribed on the basis of a system of slabs. This system functions by categorizing varied tax rates which are applicable to varied ranges of income. Increases in tax rates correspond to increases in the income of a taxpayer. This manner of taxation allows is progressive and fair to all taxpayers. Income tax slabs are capable of being altered at as per the Finance Bill introduced in the Parliament every year. Slab rates may alter for different strata of taxpayers.
Thus far, categories recognized under individual taxpayers are qualified as follows –
- Individuals under 60 years of age (residents and non-residents included)
- Senior citizens who are residents and fall between 60 to 80 years of age.
- Super senior citizens who are residents and are older than 80 years of age.