Taxation serves as a source of revenue for any government. Taxes provide the majority of the funds required to construct roads, pay government staff, and so on.

In this article, let’s have a look at the tax structure in India.

Primarily there are two types of taxes: indirect taxes where we pay the tax while buying a good or service and direct taxes are the ones that are taken upon one’s income, property, etc. 

• Tax Slab

Every individual in India earns a wide variety of incomes. As a result, it is necessary to impose a tax on you depending on your earnings, the tax ratio may differ if someone makes more. 

The Income Tax Act categorizes different income levels and imposes varying rates based on the categorization. These categories are called tax slabs. One’s tax bracket is defined not just by his income but also by his age. The income-tax slabs are changed every year accordingly at the Central Government’s Budget Session.

On February 1, 2020, India’s Finance Minister, Nirmala Sitharaman, delivered the Union Budget, 2020, which included a new income tax bracket. Regular persons, elderly citizens, and HUFs now have access to a new tax system that allows them to pay taxes at reduced income tax slab rates.

One can choose any one of the regimes to pay their tax.

If you want to avail deductions in your salary bracket then you might avail of tax exemptions. The deductions can only be taken in the case of the old regime. 

If you want to calculate your tax, here’s a link to the tax calculator. 

Conclusion:

When we evaluate the government’s numerous responsibilities, we must recognize that we must pay taxes in accordance with the law. We must behave responsibly as citizens so as to run things functionally in the country.