2017
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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15 %
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3 %
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5 %
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7 %
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Detailed explanation-1: -Currently, a 5 per cent tax is levied on total income between Rs 2.5 lakh and Rs 5 lakh, 10 per cent on Rs 5 lakh to Rs 7.5 lakh, 15 per cent on Rs 7.5 lakh to Rs 10 lakh, 20 per cent on Rs 10 lakh to Rs 12.5 lakh, 25 per cent on Rs 12.5 lakh to Rs 15 lakh, and 30 per cent on above Rs 15 lakh.
Detailed explanation-2: -Post this, the income left which is still chargeable to tax is Rs 13, 50, 000 (Rs 16, 00, 000 minus Rs 2, 50, 000). The next slab is between Rs 5 lakh and up to Rs 7.5 lakh. Out of Rs 13, 50, 000, the next Rs 2.5 lakh (Rs 7.5 lakh minus Rs 5 lakh) will be taxed at 10%. The income tax payable comes out to be Rs 25, 000.
Detailed explanation-3: -This means individuals earning up to Rs 2.5 lakh/year do not have to pay any taxes. Though taxable income up to Rs 5 lakh is also practically tax-free due to the rebate provided by Section 87A, income above Rs 5 lakh increases the tax liability of the individual taxpayer.