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History of Personal Income Tax of India
 
History of Personal Income Tax of India

 

 

  • In India, personal income tax is paid on the income earned. Higher the income, higher the tax paid.
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  • Over the years, income tax slabs and rates have undergone a lot of changes.
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  • Compared to today, historically tax rates were much higher with more income tax slabs.
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  • Personal income tax over the years has been rationalized and the recommendation from Tax Reform Committee,1991, personal income tax slabs were reduced to 3 along with tax rates brought down to 20%,30% and 40%.
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  • From financial year 1997-98 tax rates have been further reduced to 10%, 20% and 30% which has remained constant till date. However income tax slab amounts have undergone changes.
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  • Chart below shows trend in personal income tax collection.
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Trend in Personal Income Tax collection

 

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