In India, the income tax is a certain amount of money that is charged on the annual income of a person. There a percentage of GST is charged on goods and services. Income tax slab rates mainly collect money from individuals with higher pay.
When the criteria of taxation increases, then the taxation system also increases. It is called progressive taxation. On the other hand, GST depends on consumption, so the people have a high income; they will pay tax indirectly as GST. Both the GST and the system of income tax slab rate have the same results in two different ways.
Income Tax Act, 1961:
The bill of income tax falls in the department of the income tax act, 1961 has expanded, and that has been effective since 1962. The income tax slab comes with penalties of the assessment procedure, taxable income and tax liability, etc.
- Income – Income is a receipt of a bunch of money which an individual receives after a certain number of works with a period that maintains a regularity.
- Annual Revisions – The act of income tax is a law of revenue; the government can make amendments in it whenever it requires. In the final bill which the government suggests that declares the limit of different tax rates is labeled as ‘income tax’.
Read More – Income Tax Login and Registration Guide on IT Return Portal India
Some Factors That Apply To The Tax Rates Are:
- The gross income
- Tax rate
- The year of assessment
- The charge of income tax
- The maximum limit till the payment is not taxable
The Tax Slab Rates Are Applied To
- Any local authority
- Firm
- Company
- Hindu family that is undivided
- Any corporate or incorporated body of individuals
Significant Changes Made In The Income Tax Slabs FY 2019
There several changes occurred in FY 2018-19. Let’s have a view of the changes in this financial year 2019:
- Tax Compensation For The Middle-Class Family-
If a person is having a taxable income of five lakhs comes under tax reduction under the section of 87A of the income tax act of 1961. It was a critical point of the interim budget of 2019 for the change in taxation.
- The Standard Deduction-
For the salaried person, the standard deduction limit will be Rs. 40,000 to Rs.50,000 declares the interim budget 2019
- The Threshold Of TDS On Rental Income-
The income tax privilege for the unsold property increases from 1 to 2 years and the TDS threshold on rental income increases from 1.8 lakhs to 2.4 lakhs.
- The TDS Limit Applied On Interest Income-
The interim budget 2019 says that there will be no deduction of TDS from the interest income which is earned from the post office or bank deposits of money Rs. 40,000 per annum. Before it was only Rs. 10,000.
To Whom The Income Tax Slab Rates Apply?
Every person, either male or female, salaried, unemployed or self-employed of any age comes under the income tax slab rate that is applicable for that particular person.
Conclusion:
Within some segments, the rates of income tax slab are the same, such as the people below 60 years, senior citizens who are between 60 years to 80 years old and super senior citizens who are 80 years old and above. The strategy holds perfect irrespective of different criteria, whether that person is salaried, self-employed, freelancers or unemployed. Every year the Finance Act notify this and Parliament passes.
After increasing the minimum exemption limit from 2 lakhs to 2.5 lakhs, the slab rates changed in TY 2014-15. Paying income tax time to time is a mandate.
What did we learn?
