What is the Minimum Salary to Pay Income Tax?

Wondering about

minimum salary for income tax

. In India, the minimum salary threshold for paying income tax depends on the applicable income tax slabs, which vary based on the taxpayer's age and the income tax regime chosen (old or new).

What is the Minimum Annual Income for Income Tax?

The following provides a general overview based on the financial year 2023-2024:

Under the old tax regime, which allows for various exemptions and deductions, the basic exemption limit is:

1. Below 60 years: Rs. 2,50,000

2. Senior citizens (60-79 years): Rs. 3,00,000

3. Super senior citizens (80 years and above): Rs. 5,00,000

Income above these thresholds is subject to tax, with higher slabs attracting higher rates. The old regime offers tax-saving avenues like deductions under Section 80C (up to Rs. 1,50,000), Section 80D (medical insurance premiums), and other sections, which can reduce taxable income.

The new tax regime offers lower tax rates but without most exemptions and deductions available under the old regime. The basic exemption limit under this regime is the same across all age groups, at Rs. 2,50,000. The minimum salary to file ITR slabs are as follows:

• Rs. 0 to Rs. 2,50,000: Nil

• Rs. 2,50,001 to Rs. 5,00,000: 5%

• Rs. 5,00,001 to Rs. 7,50,000: 10%

• Rs. 7,50,001 to Rs. 10,00,000: 15%

• Rs. 10,00,001 to Rs. 12,50,000: 20%

• Rs. 12,50,001 to Rs. 15,00,000: 25%

• Above Rs. 15,00,000: 30%

For individuals opting for the new regime, the tax calculation is straightforward, with fewer tax-saving options. For those under the old regime, the effective tax payable can be reduced significantly through various exemptions and deductions.

Additionally, individuals with income up to Rs. 5,00,000 can avail of a rebate under Section 87A, effectively making their tax liability zero, provided their total income after deductions does not exceed Rs. 5,00,000.

Thus, the minimum salary to file income tax return in India starts from Rs. 2,50,000, varying based on the taxpayer's age and the chosen tax regime. It is essential for taxpayers to evaluate both regimes annually to choose the one that minimizes their tax liability.

This is all about the minimum salary to file taxes.

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What is the Minimum Salary for Income Tax

Click here to find the minimum salary for income tax in 2024. Learn what the minimum salary to pay income tax is and save smartly.

The minimum salary for income tax that requires an individual to pay income tax varies based on factors such as age, residential status, and applicable tax slabs. Let’s explore the details:

1. Income Tax Slabs for FY 2023-24 (AY 2024-25):

   • The income tax slabs are different under the old and the new tax regimes.

   • For the

     old regime

     , the minimum annual income for income tax exemption limit is:

     • Up to Rs 2,50,000 for individuals, HUF below 60 years aged, and NRIs.

     • Up to Rs 3,00,000 for senior citizens aged above 60 years but less than 80 years.

     • Up to Rs 5,00,000 for super senior citizens aged above 80 years.

   • For the

     new regime

     , the income tax exemption limit is up to Rs 3,00,000 for individuals and HUF opting for the new regime.

2. Comparison of Tax Rates:

Here’s a comparison of tax rates under the old and new tax regimes for FY 2023-24:

1. Additional Notes

   :

   • Surcharge and cess will be applicable over and above the tax rates.

   • The income tax exemption limit for NRIs is up to Rs 2,50,000 in the old regime and up to Rs 3,00,000 in the new regime.

I hope you get an idea of what is the minimum salary to pay income tax.

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