Correct Answer - Option 4 : 10%
The Correct Answer is 10%
According to the Income Tax Act of India, income tax is levied on all individuals, HUFs, partnership firms, LLPs, and corporations. If an individual's income exceeds the minimum threshold limit, they are subject to a slab system of taxation (known as the basic exemption limit).
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Income Tax Slab: Individual taxpayers in India pay income tax according to a slab system. Different tax rates are prescribed for different ranges of income under a slab system. It means that if a taxpayer's income rises, his or her tax rate rises as well. This sort of taxation helps the government to have progressive and equitable tax systems.
- The rates for Tax slabs are subject to change during every budget
Income Tax Slab Assessment Year 2020-21
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Income Tax Slab
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New Regime Income Tax Slab Rates FY 2020-21
(Applicable for All Individuals & HUF)
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Rs 0.0 – Rs 2.5 Lakhs
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NIL
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Rs 2.5 lakhs- Rs 3.00 Lakhs
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5% (tax rebate u/s 87a is available)
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Rs. 3.00 lakhs – Rs 5.00 Lakhs
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Rs. 5.00 lakhs- Rs 7.5 Lakhs
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10%
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Rs 7.5 lakhs – Rs 10.00 Lakhs
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15%
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Rs 10.00 lakhs – Rs. 12.50 Lakhs
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20%
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Rs. 12.5 lakhs- Rs. 15.00 Lakhs
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25%
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> Rs. 15 Lakhs
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30%
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