Income Tax Slab: As people’s income increases, people have to pay tax as well. On the other hand, when people’s income becomes taxable, then people have to pay tax according to the Income Tax Slab.
Income tax slabs are different for different income groups. At the same time, people can pay income tax according to two slabs. In these one Old Tax Regime is included and there is also another New Tax Regime.
Tax Regime
The Finance Minister had introduced the new tax regime in the Union Budget 2020, wherein there is an option for individuals and HUFs (Hindu Undivided Families) to pay tax at lower rates without claiming deductions under various sections. Tax rates are different in Old Tax Regime and New Tax Regime. However, if the age of a taxpayer is less than 60 years, then he does not have to pay any tax on Rs 2.5 lakh annually.
Income Tax After this, taxpayers below the age of 60 years have to pay 5% tax on annual income between Rs 2.5 lakh and Rs 5 lakh. However, these people also get a tax rebate of 5 percent. But some people have been given tax exemption by the government even on higher annual income.
They are given tax exemption up to an income of 5 lakhs. In fact, the New Tax Regime rates have not been differentiated on the basis of age. However, under the Old Tax Regime, no tax is levied on an annual income of Rs 3 lakh for senior citizens, whose age is between 60 and 80 years. On the other hand, for Super Senior Citizens, whose age is more than 80 years, no tax has to be paid on annual income of Rs 5 lakh.
