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BUDGET 2018 --------------------------------------- CHANGES IN INCOME TAX SLABS OVER THE YEARS --------------------------------------- Since independence, India's tax slabs have changed as the nation has progressed. Here's a timeline of these changes. |
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1949-50 Tax rate imposed for the |
Incomes up to Rs. 10,000: Tax reduced by 1/4th of an anna
From one anna to nine pies
From two annas to “one nine pies” |
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1974-75 Tax reduced to 75% from |
Up to Rs. 6,000: No income tax
70%. Surcharge rate was reduced to 10% for all categories
Income tax + surcharge = 77% of the taxable income |
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1985-86 Number of tax slabs |
Highest income tax reduced: from 61.875% to 50% Income < Rs. 18,000: No tax Rs. 18,0001 to Rs. 25,000: 25% Rs. 25,001 to Rs. 50,000: 30% Rs. 50,001 to Rs. 1 lakh: 40% Above Rs. 1 lakh: 50% |
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1992-93 Number of tax slabs |
Rs. 30,000 to Rs. 50,000: 20% Rs. 50,000 to Rs. 1 lakh: 30% Above Rs. 1 lakh: 40% |
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1994-95 Tax slabs altered |
Rs. 35,000 to Rs. 60,000: 20% Rs. 60,000 to Rs. 1.2 lakh: 30% Above Rs. 1.2 lakh: 40% |
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1997-98 Rates were changed to |
Rs. 40,000 to Rs. 60,000: 10% Rs. 60,000 to Rs. 1.5 lakh: 20% Above Rs. 1.5 lakh: 30%
deduction was reduced
and contributing 10% to provident fund, |
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2005-06 Considerable changes |
Upto Rs. 1 lakh: No Tax Rs. 1 lakh to Rs. 1.5 lakh: 10% Rs. 1.5 lakh to Rs. 2.5 lakh:20% |
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2010-11 Tax slabs changed |
Upto Rs. 1.6 lakh: No Tax Rs. 1.6 lakh to Rs. 5 lakh: 10% Rs. 5 lakh to Rs. 8 lakh:20% Above Rs. 8 lakh: 30% |
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2012-13 Exemption limit increased |
Upto Rs. 1 lakh: No Tax Rs. 1 lakh to Rs. 1.5 lakh: 10% Rs. 1.5 lakh to Rs. 2.5 lakh: 20% |
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2017-18 |
Rs. 2.5 lakh to Rs. 5 lakh: 5% Rs. 2.5 lakh to Rs. 3.5 lakh: Upto Rs. 3 lakh: No Tax |
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2018-19 Tax slabs remain the |
Cess on income tax increased to 4% from 3% Standard tax deduction of Rs. 40,000 for transport and medical reimbursement (in lieu of existing medical and conveyance reimbursement) LTCG above Rs. 1 lakh to be taxed at 10% For senior citizens: Exemption on interest income on FDs and RDs increased to |
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