What is Tax ??????

Tax is a financial charge imposed by governments on individuals and businesses to generate revenue. This money funds public services like education, healthcare, infrastructure, and social programs. Taxes come in various forms, such as income tax, sales tax, property tax, and excise tax. The specific types and rates of taxes can vary by country and jurisdiction.

Why to pay tax ?

Paying taxes is important for several key reasons:

1. Funding Public Services: Taxes provide the money needed for essential services like education, healthcare, infrastructure, and public safety.


2. Supporting Social Programs: Taxes help fund social services such as unemployment benefits, social security, and welfare programs that support individuals and families in need.


3. Economic Stability: Tax revenue supports government operations and helps stabilize the economy by funding public investments and managing national debt.


4.Public Infrastructure: Taxes finance the construction and maintenance of roads, bridges, public transportation, and utilities that are vital for daily life.


5. Regulation and Enforcement: Taxes help fund regulatory agencies that oversee various industries, ensuring safety, fairness, and compliance with laws.


6. In essence, paying taxes is a way to contribute to the collective well-being and functioning of society.

Rate of TAX.

Income Tax Rates for Individuals


Under the Old Regime (with deductions and exemptions):


1. For individuals below 60 years of age, including HUFs:

1) Up to ₹2.5 lakh: Nil
2) ₹2.5 lakh to ₹5 lakh: 5%
3) ₹5 lakh to ₹10 lakh: 10%
4) ₹10 lakh to ₹12.5 lakh: 15%
5) ₹12.5 lakh to ₹15 lakh: 20%
6) Above ₹15 lakh: 30%

Note: Income above ₹2.5 lakh is subject to a 30% surcharge if the total income exceeds ₹50 lakh, and an additional 4% Health and Education Cess is applied.



2. For Senior Citizens (60 years and above but below 80 years):

1) Up to ₹3 lakh: Nil
2) ₹3 lakh to ₹5 lakh: 5%
3) ₹5 lakh to ₹10 lakh: 10%
4) ₹10 lakh to ₹12.5 lakh: 15%
5) ₹12.5 lakh to ₹15 lakh: 20%
6) Above ₹15 lakh: 30%

3. For Super Senior Citizens (80 years and above):

1) Up to ₹5 lakh: Nil
2) ₹5 lakh to ₹10 lakh: 10%
3) ₹10 lakh to ₹12.5 lakh: 15%
4) ₹12.5 lakh to ₹15 lakh: 20%
5) Above ₹15 lakh: 30%



Income Tax Rates Under the New Regime (with no deductions/exemptions):

1. For all individuals:

Up to ₹3 lakh: Nil 1) ₹3 lakh to ₹6 lakh: 5%
2) ₹6 lakh to ₹9 lakh: 10%
3) ₹9 lakh to ₹12 lakh: 15%
4) ₹12 lakh to ₹15 lakh: 20%
5) Above ₹15 lakh: 30%

Note: Under the new regime, the surcharge and cess rates are the same as in the old regime.

Corporate Tax Rates

1. Domestic Companies:

1. For companies with turnover up to ₹400 crore: 25%
2. For other companies: 30%

2. Foreign Companies:

1. 30% (with applicable surcharges and cess)

3. Minimum Alternate Tax (MAT):

1. 15% of book profits, with applicable surcharges and cess.

Capital Gains Tax Rates

Short-Term Capital Gains (STCG):
1) Listed securities: 15%
2) Other assets: Taxed at the individual's applicable slab rate.
Long-Term Capital Gains (LTCG):
1. Listed securities: Gains above ₹1 lakh are taxed at 10% without indexation. Real estate: Taxed at 20% with indexation.