With every individual’s income in the country being subject to taxation by the government, every year’s financial budget is something that the entire country looks forward to with bated breath, in the hopes that it might not weigh in on their wallets as much anymore.

With the next financial budget declaration closing in, the same air of anticipation is taking over the country. Here’s a look at the current income tax slabs that we have in effect, so as to get better clarity on what is coming. 

For tax payers below the age of 60 include women:

1. Tax will not be payable up to an income of 2.5 Lakhs.
2. If income is between 2.5 lakhs to 5 lakhs, 10% of income exceeding 2.5 lakhs is payable.
3. If income is between 5 lakhs to 10 lakhs, Rs 25,000 + 20% of the income exceeding Rs 5 lakhs is to be payable. 
4. For those with income above 10 Lakhs, Rs 1,25,000 + 30% of income above 10 lakhs is payable.

For those aged between 60 and 80 years of age:

1. Tax will not be payable for those with an income of Rs 3 lakhs or less.
2. Between 3-5 Lakhs, 10% of income exceeding 3 lakhs is to be paid.
3. Between 5-10 Lakhs, Rs 20,000 + 20% of income exceeding 5 lakhs.
4. Above 10 Lakhs, Rs 1,20,000 + 30% of income exceeding 10 lakhs.

For those aged above 80:

1. Tax will not be payable for those with income up to 5,00,000
2. Between 5,00,000 to 10,00,000, 20% of the income exceeding 5,00,000 to be paid.
3. For those with incomes of 10,00,000 and above, Rs 1 Lakh + 30% of the income exceeding 10,00,000.
   • In addition to the slab rates given above, a surcharge of 15% is charged on income where the total income exceeds Rs 1 Crore and 3% education cess.

No one wants to write cheques to the government, giving their hard earned money away. According to article 80C, investments among many other variables, are subject to tax exemption. Therefore, by carefully planning out your investments across, , Life Insurance Policies,Life Insurance Policies, ULIP plans, PPFs and other tax saving investments, you can formulate effective tax saving plans, that could allow you to keep your money with you.

Also read: How does Life Insurance Save Tax and Money?