Outlook Money
Tax is computed using a tax slab on income. It implies that people pay taxes as per their income level.
No tax will be imposed on the person earning lower than Rs 3 lakh per annum.
People earning Rs 3-6 lakh per annum will be subjected to a 5 per cent tax on their income.
People earning between Rs 6 lakh and Rs 9 lakh per annum will be taxed at 10 per cent.
Annual income between Rs 9 lakh and Rs 12 lakh will be subjected to a tax of 15 per cent.
The people earning between Rs 12 lakh and Rs 15 lakh per annum is a subject to 20 per cent tax on their income.
The people earning more than Rs 15 Lakh per annum will be charged 30 per cent tax on their income.