In India, the starting profits to pay tax depends on the age of the character and the profits tax regime chosen — the old regime or the brand new regime brought in budget 2020.
Under the new tax regime (FY 2024-25), that's now the default, individuals do not ought to pay any tax if their annual income is up to Rs 3 lakh. For income above Rs 3 lakh, a slab-based gadget begins:
Rs 3 lakh – Rs 6 lakh: 5%
Rs 6 lakh – Rs 9 lakh: 10%
Rs nine lakh – Rs 12 lakh: 15%
Rs 12 lakh – Rs 15 lakh: 20%
Above Rs 15 lakh: 30%
However, underneath phase 87A, individuals with income as much as Rs 7 lakh are eligible for a full rebate, that means they received’t pay any tax even though their profits is barely above the Rs three lakh threshold.
Under the vintage tax regime, the fundamental exemption restrict is:
Rs 2.five lakh for people below 60 years
Rs 3 lakh for senior residents (60–eighty years)
Rs 5 lakh for amazing senior residents (eighty+ years)
Even inside the old regime, section 87A rebate applies for earnings as much as Rs 5 lakh, ensuing in zero tax liability for such earners.
It’s important to word that earnings consists of profits, enterprise earnings, rent, hobby, etc. The ones earning underneath the exemption restrict aren’t required to pay tax, however may still record a go back to assert refunds or establish monetary evidence.
Selecting the right tax regime depends on your earnings degree, deductions, and exemptions.
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