Income tax rates

The government of India keeps on revising the income tax rates after a span of time. The revision of income tax takes place at the time of union budget declaration. The income tax rates in India are constant all over the country. Unlike value added tax (VAT) it is not varied on state to state basis. Income tax rates are same in all the territories of India. There is a difference in income tax structure due to the gender. The income tax structure is different for the males and females.

In the service and business sector the income tax slab for the male and female differs. From this year to make the income tax return simple the income tax department has released a form that consists of just two pages. The two pages income tax return form is easy to understand and simple to fill. There is an exemption of Rs 20,000 on investment in tax saving infrastructure bonds. There is one more exemption up to Rs 100,000 that is already exists, this exemption allows under specific saving structure. If an individual, organization, Co-operative society, trust or firms is giving money for charity or donation there is a clause of total tax exemption for an individual. As India is a land of farmers special tax wavers has given for the agriculture, there is an income tax exemption on agricultural income. The education cess tax is 2% where as higher education cess tax is 1% on tax plus surcharge.

The income tax revised structure comes every year prior to the month of March as it’s a closing of the financial year in the month of March hence Union government always take this into consideration while declaring income tax rates. Usually the income tax percent is not revised every year. In service industry, it’s a responsibility of the company or organization to ensure that employee is paying their income tax on time. All the valid documents that need to be declare at the time of tax returns that save the income tax of the employee should be intimated by the company. In the month of March after the declaration of its investment by the employees the accountant of the company fills the tax forms on behalf of the employee and pays the tax accordingly to the government. As per the procedure once employees declare the documents of their investment the company starts disburse the tax amount.

Let’s have a look at the supporting documents of the investment by the employees that are necessary to save the income tax:

• Home loan and mortgage loan proof
• Insurance of the individual or family
• Mutual fund investment.
• Education loan.
• Tuition fees of the college.
• Rent receipt.
• Hospital bills.

It is often see once employee declare their investment after the month of March most probably in the salary slip of April and May the tax deduction will be clearly mentioned in the salary slip. In India income tax department issued form 16 via the organization to its employees that mention the amount of tax paid by an individual towards the government. Form 16 is the legal proof of the employee contribution towards the country in the form of Income tax. Form 16 is the most important document that had a record of income tax structure for a year. All the banks and financial services always demand a form 16 certificate to check the record of amount of tax paid by an employee to the government. In India income tax is mandatory for the people who are residing in the country and earning money in the country.

As we all know the income tax slabs for male and female employees are different. Below we have discussed the different tax slabs for male and female.

Latest income tax slab for the year 2010