Despite having a population of 132.4 crores, merely 1.7% crore Indians paid Income Tax during the assessment year 2015-16, according to data provided by Income Tax department.
The data also stated that collection from income tax stood at Rs 1.88 lakh crore in 2015-16, lower from Rs 1.91 lakh crore in the previous year.
Considering the above facts, it is obvious that the nation has few honest taxpayers, and of these, most people are not aware of which tax slab they come under.
If you are confused as to how much income tax you need to pay from your earnings, here's a list of details that you should remember.
If you are a salaried person and earn up to Rs 2.5 lakh, you are not liable to pay any income tax. However, if you earn between Rs 2.5 lakh and Rs 5 lakh, you have to pay 5% income tax.
As for earnings between Rs 5 lakh and Rs 10 lakh, you need to pay 20% income tax, and those who earn above Rs 10 lakh and above, they have to pay 30% income tax.
Notably, a person earns between Rs 50 lakh and Rs 1 crore he/she will pay only 10% income tax. While those earning over Rs 1 crore have to pay 15% of income tax. However, the people who earn in crores also pay additional 3% service charge.
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