The income tax system in India based on the Income Tax Act,1961. Individuals are required to file an income tax return (ITR) annually, declaring their income from various sources like salary, business or profession, capital gain and other sources and applicable deductions or credits. Failure to file taxes result in penalties and legal consequences. It is important to understand your tax obligations and seek professional advice if necessary. The income tax rates and slabs are revised periodically by the government in the annual budget. The income tax system in India is a progressive tax system, which means that individual with higher income pay high rate of tax on their income and vice versa.
Income Tax Slabs & Rates as per New Regime for FY 2023-24
| Income Tax Slab | Income Tax Rate |
| Up to ₹ 2,50,000 | Nill |
| ₹ 2,50,001 – ₹ 5,00,000 | 5% above ₹ 2,50,000 |
| ₹ 5,00,001 – ₹ 7,50,000 | ₹ 12,500 + 10% above ₹ 5,00,000 |
| ₹ 7,50,001 – ₹ 10,00,000 | ₹ 37,500 + 15% above ₹ 7,50,000 |
| ₹ 10,00,001 – ₹ 12,50,000 | ₹ 75,000 + 20% above ₹ 10,00,000 |
| ₹ 12,50,001 – ₹ 15,00,000 | ₹ 1,25,000 + 25% above ₹ 12,50,000 |
| Above ₹ 15,00,000 | ₹ 1,87,500 + 30% above ₹ 15,00,000 |
Note: Under the New tax regime, tax slab is the same for all individuals irrespective of their age.