All the tax terms you should know in India, also know tax rates for individuals

You can learn more about the typical tax rates that apply to various taxpayers in this section. For unique tax rates that apply to certain types of income, such as long-term capital gains, lottery winners, etc.

Income Tax:

Income tax is a tax imposed on the income earned by individuals, businesses, and other entities. It is calculated based on various income sources such as salary, investments, and capital gains.

Assessment Year (AY):

Assessment Year refers to the year in which income tax returns are filed for a particular financial year. For example, the AY 2022-23 corresponds to the financial year 2021-22.

Financial Year (FY):

Financial Year refers to the period from April 1st to March 31st of the following year. It is used to calculate income, taxes, and other financial matters.

Taxable Income:

Taxable income is the amount of income on which an individual is liable to pay taxes after considering deductions, exemptions, and allowances.

Tax Deductions:

Tax deductions are specific expenses or investments that can be subtracted from the total income, reducing the taxable income. Examples of deductions include investments in specified savings schemes, medical expenses, and home loan interest payments.

Tax Exemptions:

Tax exemptions are certain types of income that are not included in the calculation of taxable income. Common examples of exemptions in India include agricultural income, certain allowances, and dividends from certain investments.

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Tax Slabs:

 The income tax rates in India are categorized into different slabs based on income level.

The tax slabs for individuals for the assessment year 2022-23 (financial year 2021-22) are as follows:

Surcharge:

Surcharge is an additional tax levied on individuals with higher incomes. It is calculated as a percentage of the income tax amount and varies based on the income level.

Health and Education Cess:

Health and Education Cess is an additional surcharge levied on the income tax and surcharge amount. It is calculated as a percentage of the income tax and surcharge and is used for funding healthcare and education initiatives.

It's important to note that tax rates, exemptions, and deductions may change from year to year. It's advisable to consult with a tax professional or refer to the official government sources for the most up-to-date information related to taxation in India.

Above are the tax rates for individuals and Hindu Undivided Families (HUFs) in India based on different age categories for the old tax regime:

Tax Rates for Individuals and HUFs Under the Old Tax Regime for Age Below 60 Years

Tax Rates for Senior Citizens Aged Between 60 and 80 Years Under the Old Tax Regime

Tax Rate for Super Senior Citizens Aged above 80 Years (Old Regime):

It's important to note that these tax rates apply to the old tax regime and may change from year to year. Additionally, deductions and exemptions may apply based on specific criteria and investment options. It's advisable to consult with a tax professional or refer to the official government sources for the most up-to-date information regarding taxation in India.

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