What are the current income tax slabs?

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    In India, income tax is levied on the individual taxpayers as per a slab system which has been in place for quite some time now. According to this slab system, the individuals who draw a higher salary or have a higher income pay more income tax than another individual who has a lower income and falls in a lower income bracket. These income slabs are based on two major factors which are the income of an individual along with the age of the said individual. The individuals have been divided into 3 brackets according to their respective age groups. These age groups are individuals less than 60 years, individuals between 60 and 80 years old and individuals greater than 80 years old.

    Similarly, the brackets for the income earned are individuals who draw an income of less than INR 2.5 lakh per annum, individuals who earn between INR 2.5  and 5 lakh per annum, individuals who earn between 5 and 10 lakh per annum and individuals who earn more than 10 lakh per annum. The interest rates keep changing as per the announcements by the government during the annual budget presentation at the Parliament.

    Currently, individuals less than 60 years old do not have to pay any tax f they earn less than INR 2.5 lakh, have to pay a tax of 5% if they earn between INR 2.5 lakh and INR 5 lakh per annum, have to pay a tax of 20% if they earn between INR 5 lakh and 10 lakh per annum and have to pay an income tax of 30% if they earn more than INR 10 lakh per annum. For individuals between 60 and 80 years old, they do not have to pay any tax if they earn less than INR 3 lakh per annum, pay a tax of 5% if they earn between INR 3 lakh and INR 5 lakh per annum. The rest of the tax slabs remain the same. For individuals above 80 years old, they do not have to pay tax if they earn less than INR 5 lakh per annum and the other tax slabs remain the same.

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