Income tax rate News

Income tax rates have been a subject of debate in India. Even in the recent budget, when the Finance Minister did not announce a relief for the taxpayers, the middle class was most disappointed. But do you know that while many countries have either no or very low tax rates, income tax in some countries is as high as 59%, which is almost double compared to India's top slab of 30%?

Super tax is levied against people who earn high incomes. The topics of equity and fairness are central to the super tax discussion. Bill Gates has stated that he wants the ultra-rich to pay more taxes.

The Budget 2023 proposes to lower India's highest income tax rate. The new highest income tax rate is 39 percent. Earlier the highest income tax rate was 42.74 percent.

From July 1 onwards, a person will be required to pay extra TDS at a higher rate if he/she fails to file their Income Tax Returns for the last two years. Meanwhile, for TCS collection, the rate under section 206 CCA of the Act will be higher and it will be double the rate mentioned in the relevant section; or 5 percent. The tax collector or tax deductor has to check the eligibility of the person to pay TDS at a higher rate from July.

Following is the table of the impact of changes in income tax provisions proposed by Finance Minister Arun Jaitley in the Budget for 2016-17.