Understand how income tax slabs work in India and why only a portion of income is taxed at higher rates.
Income tax in India follows a slab-based taxation system, where different portions of income are taxed at different rates.
This means if your income falls into a higher slab, only the income above that slab threshold is taxed at the higher rate — not your entire income.
Tax slabs differ under the Old and New Tax Regimes and are revised periodically in the Union Budget.
Understanding tax slabs helps in better tax planning and prevents common misconceptions about higher tax brackets.
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