What are the income tax slabs for individuals in Bangalore?
INTRODUCTIONIn India, the Income Tax applies to individuals based on a slab system, where different tax rates are assigned to different income ranges. As the person's income increases, the tax rates also increase. This type of taxation allows for a fair and progressive tax system in the country. The income tax slabs are revised periodically, typically during each budget. These slab rates vary for different groups of taxpayers.
Comparison of tax rates under New tax regime & Old tax regime
Income from Rs. 2.5 lakh to Rs. 5 lakh: 5% tax
Income from Rs. 5 lakh to Rs. 10 lakh: 20% tax
Income above Rs. 10 lakh: 30% tax
Additionally, a 4%
Health and Education Cess is applicable on the income tax amount.
For senior citizens (individuals aged 60 years and above but
less than 80 years), the tax slabs are:
Income up to Rs. 3 lakh: No tax
Income from Rs. 3 lakh to Rs. 5 lakh: 5% tax
Income from Rs. 5 lakh to Rs. 10 lakh: 20% tax
Income above Rs. 10 lakh: 30% tax
For super senior citizens (individuals aged 80 years and above), the tax slabs are:
Income from Rs. 5 lakh to Rs. 10 lakh: 20% tax
Income above Rs. 10 lakh: 30% tax
NOTE
For the most accurate and updated information on income tax
slabs and other tax-related matters, it's always advisable to consult with a
qualified tax professional or refer to the latest official announcements from
the Income Tax Department of India.
- Standard Deduction: In the Union Budget of 2018, a standard deduction of Rs. 50,000 was reintroduced for salaried individuals, in lieu of transport allowance and medical reimbursement. This deduction is available to all salaried individuals, including those in Bangalore.
Deductions under Section 80C: Individuals can claim deductions of up to Rs. 1.5 lakh under Section 80C of the Income Tax Act for investments in specified instruments such as Employees' Provident Fund (EPF), Public Provident Fund (PPF), Equity Linked Savings Schemes (ELSS), National Savings Certificate (NSC), etc.
Deductions under Section 80D: Deductions are available for premiums paid towards health insurance policies for self, spouse, children, and parents. The maximum deduction allowed is Rs. 25,000 (Rs. 50,000 for senior citizens).
Home Loan Interest Deduction: Interest paid on a home loan is eligible for deduction under Section 24 of the Income Tax Act. For a self-occupied property, the maximum deduction allowed is Rs. 2 lakh per annum. Additionally, deductions for principal repayment under Section 80C are also available.
Education Loan Interest Deduction: Interest paid on education loans is eligible for deduction under Section 80E. There is no upper limit on the deduction amount, and the deduction is available for a maximum of 8 years or until the interest is fully repaid, whichever is earlier.
Deductions for Medical Treatment of Specified Diseases: Under Section 80DDB, individuals can claim deductions for expenses incurred on the treatment of specified diseases for themselves or their dependents. The maximum deduction varies depending on the age of the individual or dependent.
Exemption for HRA: Individuals living in rented accommodation can claim exemption on House Rent Allowance (HRA) received from their employers subject to certain conditions.
Exemption for Leave Travel Allowance (LTA): LTA received from employers for travel within India for self and family members is exempt from tax subject to certain conditions and limits.
Income from Other Sources: Apart from salary income, individuals may earn income from other sources such as interest on savings bank accounts, fixed deposits, dividends, etc. Some of these incomes may be eligible for deductions or exemptions under specific sections of the Income Tax Act.
Tax Filing Deadline: The deadline for filing income tax returns in India is usually July 31st of the assessment year. However, this deadline can be extended by the Income Tax Department.
These are some additional aspects of income tax in India that individuals in Bangalore, as well as other cities, should consider while planning their taxes. It's essential to stay updated with the latest tax laws and consult with tax professionals for personalized advice based on individual financial situations.
Related Articles
Income Tax Planning for Individuals in Bangalore
In a bustling city like Bangalore, where the tech industry thrives and individuals pursue diverse career paths, effective income tax planning is crucial for financial well-being. This article aims to provide a comprehensive guide for individuals in ...Tax Planning for High Net Worth Individuals (HNIs) in Bangalore
Taxes are crucial to any economy, and India is no exception. As a Tax Planning for High-Net-Worth (HNWI), your tax liabilities are likely substantial, given your income levels and assets. However, careful tax planning can minimise your tax liability ...Business Income Tax Filing in Bangalore
Setting up a business in Bangalore comes with the responsibility of navigating the complexities involved in filing income tax returns. One crucial aspect is the business tax return, which essentially serves as a comprehensive statement of a ...Compliance with Income Tax on Salary in Bangalore
Living and working in Bangalore offers numerous opportunities, but it also comes with responsibilities, including understanding and complying with income tax regulations. For salaried individuals, navigating income tax can be daunting, but with the ...Individual Income Tax Filing in Bangalore
What is ITR Filing? ITR filing in Bangalore is the process by which a taxpayer has to file a report of his total income earned in a financial year. Through Income Tax Department’s official portal, an individual can complete their filing of returns. ...