![]() Income tax slabs applicable for financial year 2015–16 (Assessment Year- 2016–17)is summarized below:ĥ% of the amount exceeding ₹ 2,50,000 (2.5 lacs) See Progressive tax#Computation for details. In practice the computation is simplified by using point–slope form or slope–intercept form of the linear equation for the tax on a specific bracket, either as tax on the bottom amount of the bracket plus the tax on the marginal amount within the bracket: Meanwhile, someone who earns $25,000 faces a more complicated calculation. Someone earning $5,000 pays $500, and so on. Under this system, someone earning $10,000 is taxed at 10%, paying a total of $1,000. ![]() The 10% rate applies to income from $1 to $10,000 the 20% rate applies to income from $10,001 to $20,000 and the 30% rate applies to all income above $20,000. Imagine that there are three tax brackets: 10%, 20%, and 30%. Essentially, tax brackets are the cutoff values for taxable income-income past a certain point is taxed at a higher rate. Tax brackets are the divisions at which tax rates change in a progressive tax system (or an explicitly regressive tax system, though that is rarer).
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |