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Income Tax

Income Tax SlabsTax Rate for Individual & HUF Below the Age Of 60 Years
Up to ₹2,50,000*Nil
₹2,50,001 to ₹5,00,0005% of total income exceeding ₹2,50,000
₹5,00,001 to ₹10,00,000₹12,500 + 20% of total income exceeding ₹5,00,000
Above ₹10,00,000₹1,12,500 + 30% of total income exceeding ₹10,00,000
  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
  • Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
  • Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
  • Surcharge of 25% on Total Income more than Rs. 2 Cr to Rs. 5 crore
  • Surcharge of 37% on Total Income more than Rs. 5 Cr

So ~3cr or 2% of Indians out of 140cr invest.

ITR filings for FY 20/21 by income.

  • ~4.8cr ₹5lks
  • ~90lks ₹5 to ₹10lks
  • ~43lks ₹10lks

If people have to invest or spend more, they need to earn at least ₹2.5lks/yr?

Incomes exempt from paying tax​

  1. Income from Agriculture (Agriculture Income)
  2. Gifts Received from Relatives
  3. Income from Gratuity
  4. Scholarships
  5. Certain Pensions - Pensions received by recipients of gallantry awards like the Mahavir Chakra, Param Vir Chakra, and Vir Chakra are tax-free. Additionally, the pension received by family members of Indian Armed Forces personnel is also exempt from tax.

Certain Pensions | Zee Business

Gratuity​

  • Lifetime Cumulative Limit: The ₹20 lakh limit for private sector employees is a cumulative, lifetime cap across all employers.
  • Taxable Portion: Any gratuity amount received above the applicable exemption limit is fully taxable as "Income from Salary".
  • Minimum Service: Generally, an employee must complete a minimum of five years of continuous service to be eligible for gratuity payment (the condition is waived in case of death or disablement).
  • Income Tax Exemption on Gratuity

New Tax Regime vs Old Tax Regime​

Old vs New Tax Regime

The Old Tax Regime is almost dead

Taxation Comparison​

Rs 10 Crore salary after taxes

  • USA: 37% → ₹6.3 CR
  • China: 45% → ₹5.5 CR
  • Japan: 55.97% → ₹4.4 CR
  • Germany: 45% → ₹5.5 CR
  • India: 42.74% → ₹5.7 CR
  • UK: 45% → ₹5.5 CR
  • France: 55.4% → ₹4.5 CR
  • Italy: 47.2% → ₹5.3 CR
  • Brazil: 27.5% → ₹7.25 CR
  • Canada: 33% → ₹6.7 CR
  • Russia: 13% → ₹8.7 CR
  • S. Korea: 45% → ₹5.5 CR
  • Australia: 45% → ₹5.5 CR
  • Spain: 54% → ₹4.6 CR
  • Mexico: 35% → ₹6.5 CR
  • Indonesia: 35% → ₹6.5 CR
  • Netherlands: 49.5% → ₹5.05 CR
  • Saudi Arabia: 0% → ₹10 CR
  • Turkey: 40% → ₹6 CR
  • Switzerland: 40% → ₹6 CR
  • Taiwan: 40% → ₹6 CR
  • Poland: 36% → ₹6.4 CR
  • Sweden: 52.3% → ₹4.77 CR
  • Belgium: 53.5% → ₹4.65 CR
  • Thailand: 35% → ₹6.5 CR
  • Argentina: 35% → ₹6.5 CR
  • Austria: 55% → ₹4.5 CR
  • Norway: 39.6% → ₹6.04 CR
  • UAE: 0% → ₹10 CR
  • Israel: 50% → ₹5 CR
  • South Africa: 45% → ₹5.5 CR
  • Malaysia: 30% → ₹7 CR
  • Denmark: 55.9% → ₹4.41 CR
  • Singapore: 22% → ₹7.8 CR
  • Philippines: 35% → ₹6.5 CR
  • Ireland: 52% → ₹4.8 CR
  • Vietnam: 35% → ₹6.5 CR
  • Hong Kong: 15% → ₹8.5 CR
  • Chile: 40% → ₹6 CR
  • New Zealand: 39% → ₹6.1 CR
  • Finland: 56.9% → ₹4.31 CR
  • Colombia: 39% → ₹6.1 CR
  • Portugal: 48% → ₹5.2 CR
  • Czechia: 23% → ₹7.7 CR
  • Hungary: 15% → ₹8.5 CR
  • Greece: 45% → ₹5.5 CR
  • Ecuador: 35% → ₹6.5 CR
  • Peru: 30% → ₹7 CR

Rs 10 crore salary: How much you take home in US vs India vs UAE vs Finland? Here's a comparison