People in the nation are required to pay income tax when their income rises. Every person whose income is taxable is required to pay income tax. In India, there are various Income Tax Slab used to collect income tax. People are required to pay tax on their income in accordance with these tax slabs.
On the other side, the central government will also present the budget after a few weeks. Every year, taxpayers anticipate that the government will include a tax break in the budget. However, now that the budget is approaching, it is crucial for taxpayers to be aware of something crucial.
Tax
Actually, the government will be able to collect tax in two slabs for the fiscal year 2021–2022. There are two tax regimes: the New Tax Regime and the Old Tax Regime. Both income tax slabs have a distinct tax rate applied to it. In this case, the government also collects a 20 percent income tax on a variety of incomes. Here, we’ll explain how much income is subject to a 20% tax under the New Tax Regime and how much is taxed under the Old Tax Regime.
20 percent tax
Tell them that if their income tax is to be filed under the New Tax Regime, they must pay 20% tax on any income between Rs 10 lakh and Rs 12.5 lakh per year. However, 20% tax will need to be paid on income between Rs 5 lakh and Rs 10 lakh per year if income tax is filed under the Old Tax Regime.
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