Income tax exemption limit is up to Rs 2,50,000 for Individuals , HUF below 60 years aged and NRIs.
Income Tax Slab
New Regime Income Tax Slab Rates FY 2022-23 (Applicable for All Individuals & HUF)
Rs 7.5 lakh � Rs 10.00 lakh
15%
Rs 10.00 lakhs � Rs 12.50 lakh
20%
Rs 12.5 lakhs � Rs 15.00 lakh
25%
> Rs 15 lakh
30%
2)
Minimum salary to pay income tax?
The lower the income, the lower the tax liability, and those who earn less than Rs. 2.5 lakh p.a. are exempt from tax. Individuals who are less than the age of 60 years old. Senior citizens
who are above 60 years old and below 80 years of age.
Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax liability will be nil of such individual in both � New and old/existing tax regimes.
3)
Types of Taxes in India
As per the Income Tax Act, there are 2 types of taxes in India:
Direct Taxes It is borne and paid directly by the individual on whom it is imposed such as, wealth tax, income tax, gift tax, etc. The taxpayer pays this tax directly to the government without any involvement of intermediary source.
Indirect Taxes If a tax is passed on by the taxpayer to the other person, it is an indirect tax e.g. sales tax, Value Added Tax (VAT) etc. This type of tax is paid indirectly to the Income tax department.
Who are the Tax Payers?
Any Indian citizen aged below 60 years is liable to pay income tax, if their income exceeds Rs 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs 2.5 lakhs, he/she will have to pay taxes to the Government of India.
Additionally, the following entities that generate income are liable to pay direct taxes:
Hindu Undivided Family (HUF)
Body Of Individuals (BOI)
Association of Persons (AOP)
Local Authorities
Corporate firms
Companies
All Artificial Juridical Persons
How is the Income Tax Collected?
There are primarily three ways in which the Income Taxes are collected by the Government: Taxes Deducted at Source (TDS) Taxes Collected at Source (TCS) Voluntary payment by tax payers into
designated Banks.
