Where does India stand in terms of income tax rate, know how the income tax rates are decided, in which countries how much tax is charged?
highlights
There is no personal income tax in the countries of the Middle East.
The tax rate in India is up to 42.74 percent.
Income tax rates in other countries range from 10% to 60%.
New Delhi. General budget to be presented on February 1 (Budget 2023) There is speculation about important changes in the income tax slabs before . India follows the progressive tax slab system for individual taxpayers, in which the tax rate varies depending on various factors. (Income Tax Slab) is determined. These factors include different factors including age group and different levels of income, on the basis of which the income tax rates in India are decided.
At the same time, in countries other than India, the rules regarding the determination of income tax slabs are almost the same but the rates are different. Let us know in detail about the various factors that determine the rates of income tax…
Income tax rates are decided on the basis of these factors
- Age Group: Normal taxpayer (below 60 years of age), Senior Citizen (above 60 years but less than 80 years of age) and Super Senior Citizen (above 80 years of age). Senior citizens get higher basic exemption on income tax.
- Individuals have different levels of income where higher incomes are subject to higher tax rates.
- In addition, tax surcharge is applicable depending on the income level.
- In addition, Health and Education Cess @ 4% is levied on the tax and surcharge.
Got this big relief to save tax
The basic exemption limit was increased from Rs 200,000 to Rs 250,000 in the Union Budget 2014-15. This was the same year when the deduction limit under section 80C of the Income Tax Act, 1961 (Act) was increased from INR 100,000 to INR 150,000.
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Section 80C of the Income Tax Act allows deduction for a number of expenses/investments like Employees Provident Fund contribution, tuition fee for children, life insurance premium paid etc., which are basic and quite popular among individual taxpayers.
Taxes are necessary for the development of the country.
Tax is a very important factor in the development of every country. The amount received from taxes enables the government to spend on infrastructure, health and education for its citizens. There are many factors that help countries develop an efficient tax system – such as population size and composition, gross domestic product (GDP) ratio, macro-economic policy, inflation rate, etc.
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Some countries in the world follow a uniform tax-rate system, most countries like the US, Canada, Japan, etc. follow a progressive tax slab rate system. Tax rates also differ depending on residence, marital status, source of income etc. Countries in the Middle East do not have personal income tax, tax rates in other countries range from 10% to 60%.
Income tax rates around the world including India
- India 42.74%
- Canada 33%
- US 37%
- France 45%
- Finland 56.95%
- Germany 45%
- UK 45%
- China 45%
- Hong Kong 15%
- Japan 55.97%
- Singapore 22%
- Australia 45%
The maximum tax rate in India is almost at par with other countries around the world. However, the basic exemption limit, deductions, exemptions etc. differ from country to country. With the comparatively high inflation rates in the last few years, it would be appropriate to increase the basic exemption limit in the upcoming budget to bring in the much needed tax sop for individual taxpayers.
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Tags: Budget, budget session, income tax exemption, income tax india, income tax return, income tax slabs
FIRST PUBLISHED : January 31, 2023, 07:30 IST
