Contact us
To Buy: 1800-258-5899 (9:30 AM to 6:30 PM)
For Existing Policy: 1800-103-0003/ 1800-180-0003/ 1800-891-0003
customerservice@canarahsbclife.in
Contact us
To Buy: 1800-258-5899 (9:30 AM to 6:30 PM)
For Existing Policy: 1800-103-0003/ 1800-180-0003/ 1800-891-0003
customerservice@canarahsbclife.in
You may either be involved in a profession or run a business, or you could also receive a regular salary. No matter what your field is, you are required to pay taxes on the income you earn.
The income tax system in India is very progressive. That is, the more you earn the more tax you have to pay. This tax that you pay is used by the government for the development of the country. This money is used for building infrastructure, advancing facilities, funding employees, etc.
The tax that you owe to the government as per the income you earn is known as your tax liability. This is the amount that you are liable to pay to the tax authorities.
Whether you are an individual or a company, you have to pay taxes. If you evade tax, then you can land in serious trouble and can even go to jail.
In India, the amount of income tax that you are liable to pay is calculated based upon the income tax slab you fall into. Each slab is associated with an income range and a specific tax rate. Here are the rates.
| Income Range (In Rs) | Tax Slab Rate | Max Tax Liability* |
| 0-2.5 lakh | 0% | Nil |
| 2.5-5 lakh | 5% | 12,500 |
| 5-10 lakh | 20% | 112,500 (100,000 + 12,500) |
| Above 10 lakhs | 30% | 112,500 + 30% of excess income |
| Income Range (In Rs) | Tax Slab Rate | Max Tax Liability* |
| Up to Rs 2.5 lakh | 0% | Nil |
| 2,50,001-5,00,000 | 5% | 12,500 |
| 5,00,001-7,50,000 | 10% | 37,500 (25,000 + 12,500) |
| 7,50,000-10,00,000 | 15% | 75,000 (37,500 + 25,000 + 12,500) |
| 10,00,001-12,50,000 | 20% | 125,000 (50,000 + 37,500 + 25,000 + 12,500) |
| 12,50,001-15,00,000 | 25% | 187,500 (62,500 + 50,000 + 37,500 + 25,000 + 12,500) |
| Above 15,00,000 | 30% | 187,500 + 30% of excess income |
Understand the Income Tax Slab for FY 2022-2023.
Higher education cess of 4% applies on the tax liability estimated as per slabs. Surcharge may apply where your income exceeds the following threshold:
If surcharge applies to your tax liability cess will apply after surcharge.
