Worrying
at what income is tax payable.
Income tax is payable when an individual's total income exceeds the threshold limit specified by the government for a particular financial year.
How much income is tax free?
The annual income of up to Rs. 2.5 lakh is tax-free if you have chosen the old tax regime, while for the new tax regime, the annual income of up to Rs. 3 lakh is tax-free.
At What Salary Do I Pay Tax?
This threshold limit at what income do you pay tax, also known as the "basic exemption limit," varies depending on the age and residential status of the taxpayer. Here are the basic exemption limits for different categories of individuals:
For individuals below 60 years of age, the basic exemption limit is ₹2.5 lakh per annum.
For senior citizens (individuals aged 60 years or above but below 80 years), the basic exemption limit is ₹3 lakh per annum.
For very senior citizens (individuals aged 80 years or above), the basic exemption limit is ₹5 lakh per annum.
It's important to note that these exemption limits are for the total income earned during the financial year, which includes income from all sources such as salary, business or profession, house property, capital gains, and other sources like interest, dividends, etc.
If an individual's total income exceeds the applicable basic exemption limit, they are liable to pay income tax as per the tax rates prescribed by the government for that financial year.
The income tax rates are structured into different tax slabs, and the applicable tax rates vary based on the total income of the individual.
Additionally, various deductions and exemptions under the Income Tax Act, such as investments in specified instruments, payment of insurance premiums, donations, etc., can further reduce the taxable income and the corresponding tax liability.
This is all about at what income is tax payable.
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At What Income is Tax Payable?
mukesh
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2024-03-29T14:05:28+00:00 2024-06-28T20:40:06+00:00Comment
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