What Is The Full Form Of ITS In Income Tax?
ITS full form in income tax is Income Tax Slabs. These slabs are used to determine how much tax you need to pay based on how much money you earn. The Indian Taxpayers have the option to choose between the Old Tax Regime or New Tax Regime. Each regime has its set of different tax rates and rules.
Details of the Tax Slabs:
To put it simply, in the New Regime, if you make up to ₹3,00,000, you don’t have to pay any tax. Income tax in India, then, grows progressively from 5% for incomes between ₹3,00,000 and ₹6,00,000 to 30% for incomes over ₹15,00,000. The New Regime generally has lower rates of taxes, but it does not allow many deductions and exemptions that you get with the Old Regime. On the other side, the Old Regime gives a basic tax-free amount up to ₹2,50,000 (which is more for older people), and tax rates rise from 5% to 30% as income increases. This system does allow claiming several deductions and exemptions, which can greatly reduce your taxable income.
Additional Charges:
Both systems also have extra charges and a health and education cess. Surcharge rates are different depending on the amount you earn, with the highest being 37% in the Old Regime for people earning over ₹10 crore. In the New Regime, the same surcharge is 25% for people in a similar income bracket.