Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
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Paying Taxes in India - Income that is exempt from taxes in India

Who must file a tax return in India

Every person, whose total income for the previous year is more than the tax free income allowed for their category, is required to file Income Tax Returns in India, under the provisions of the I.T. Act, 1961. Tax free income allowed for each category is called a 'slab' in India. The Income Tax Slabs show the amount of income that is exempt from taxes for an individual, in a particular financial year.

Tax Slabs for the Financial Year 2023/2024

Tax Slabs for the Financial Year 2023/2024 A significant change was the introduction of a new tax regime in 2020, which brought about modifications to the existing tax slabs. Under the old tax regime, which was in effect before the introduction of the new tax structure, individuals were taxed based on specific tax slabs determined by their income level. The tax rates were progressive, meaning that the tax rate increased as the income bracket increased. The old tax slabs for individuals and Hindu Undivided Families (HUFs) for the financial year 2019-20 (assessment year 2020-21) were as follows: Up to Rs.2, 50,000: No tax Rs. 2, 50,001 to Rs. 5, 00,000: 5% tax Rs. 5, 00,001 to Rs. 10, 00,000: 20% tax Above Rs. 10, 00,000: 30% tax In addition to the income tax, a cess of 4% was levied on the total tax liability. THIS PAGE BEING UPDATED

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Financial year in India

The financial year in India, is not January to December as in some western countries. In India the financial year for taxation purposes, begins on 1st of April every year and ends on 31st March of the subsequent year. The financial year in which the income is earned is known as the previous year. The financial year, following a previous year is known as the assessment year. The assessment year is the year, in which the salary earned in the previous year is taxable.
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Financial year in India

The financial year in India, is not January to December as in some western countries. In India the financial year for taxation purposes, begins on 1st of April every year and ends on 31st March of the subsequent year. The financial year in which the income is earned is known as the previous year. The financial year, following a previous year is known as the assessment year. The assessment year is the year, in which the salary earned in the previous year is taxable.
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
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RI Information
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Paying Taxes in India -

Income that is exempt from

taxes in India

Who must file a tax return in India

Every person, whose total income for the previous year is more than the tax free income allowed for their category, is required to file Income Tax Returns in India, under the provisions of the I.T. Act, 1961. Tax free income allowed for each category is called a 'slab' in India. The Income Tax Slabs show the amount of income that is exempt from taxes for an individual, in a particular financial year.

Tax Slabs for the Financial Year

2023/2024

Tax Slabs for the Financial Year 2023/2024 A significant change was the introduction of a new tax regime in 2020, which brought about modifications to the existing tax slabs. Under the old tax regime, which was in effect before the introduction of the new tax structure, individuals were taxed based on specific tax slabs determined by their income level. The tax rates were progressive, meaning that the tax rate increased as the income bracket increased. The old tax slabs for individuals and Hindu Undivided Families (HUFs) for the financial year 2019-20 (assessment year 2020-21) were as follows: Up to Rs.2, 50,000: No tax Rs. 2, 50,001 to Rs. 5, 00,000: 5% tax Rs. 5, 00,001 to Rs. 10, 00,000: 20% tax Above Rs. 10, 00,000: 30% tax In addition to the income tax, a cess of 4% was levied on the total tax liability. THIS PAGE BEING UPDATED