Income tax is levied on the income earned by all the individuals, HUF, partnership firms, LLPs, and Corporates as per the Income-tax Act of India. In the case of individuals, tax is levied as per the slab system if their income is above the minimum threshold limit (known as the basic exemption limit ).

What is the income tax slab



Indian Income-tax levies tax on individual taxpayers on the basis of a slab system. Slab system means different tax rates are prescribed for different ranges of income. It means the tax rates keep increasing with an increase in the income of the taxpayer. This type of taxation enables progressive and fair tax systems in the country. Such income tax slabs tend to undergo a change during every budget.These slab rates are different for different categories of taxpayers. Income tax has classified three categories of “individual “taxpayers