Income Tax Rate

Income Tax Rate – The Income Tax Rate is the percentage at which an individual’s or entity’s taxable income is levied by the government during the Assessment Year (AY), which follows the Financial Year (FY) in which the income was earned. Tax rates vary depending on the type of taxpayer, income level, and applicable tax laws. Progressive Tax Rates: Higher income is taxed at higher rates. Flat Tax Rates: A single rate applied regardless of income. Special Rates: Certain incomes like capital gains or dividends may have separate tax rates.

Example: For FY 2022–23 (assessed in AY 2023–24), an individual earning ₹10 lakh may fall under a tax slab where income up to ₹2.5 lakh is exempt, ₹2.5–5 lakh is taxed at 5%, ₹5–10 lakh at 20%, and income above ₹10 lakh at 30%.