Income Tax Slabs: Big announcement regarding income Tex slabs no tax up to 12 lakhs
Income Tax Slabs: 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 the needs of economic development and population. The increase or decrease in these rates has a direct impact on the general public, making it necessary to ensure that the tax system is equitable for all sections.
Income tax rates in India have been changing over time, which are according to the needs of economic development and population.
When and how much did the tax rate change
1997-98: First major increase
In 1997, the then Finance Minister P. Chidambaram made significant changes in the income tax rates. This year, a tax of 40% was imposed on income above Rs 5 lakh, which was the highest level at that time.
2009-10: Inclusion of surcharge
In the financial year 2009-10, the government had abolished the surcharge on personal income tax. However, after this, in 2010-11, a surcharge of 10% was imposed on income above Rs 10 lakh.
2014-15: New tax regime
In 2014, the Narendra Modi government introduced the new tax regime. 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%.
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.
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2020-21: Effects 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.
2021-22: Stability effort
This year too, the government kept tax rates stable. However, tax rates were increased for higher income groups under certain special provisions.
What was till now (2024-25)
At present, there is no tax on up to Rs 3 lakh in the new tax regime. At the same time, 5 percent tax is levied on income from 3 to 7 lakhs. At the same time, 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.
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