Slabs To Income Tax Rate, All You Need To Know About India’s First Budget

The general budget of the country will be presented in less than a month. The budget session will begin on January 31 and will be presented by Finance Minister Nirmala Sitharaman on February 1. This time, it is being speculated that the government will increase the income tax exemption limit in the upcoming budget. The practice of setting up income tax slabs begins with the first budget of India after attaining independence. You may be surprised to know that only Rs. 1,500 was tax-free in India’s first general budget.

Currently, income up to Rs 2.50 lakh is tax free. Income tax has to be paid on the annual income above this. The income tax threshold was last changed in 2014, when it was increased from Rs 2 lakh to Rs 2.50 lakh. No changes have been made in the last 9 years.

Independent’s first budget India It was introduced by RK Shanmukham Chetty, the first Finance Minister of India on 26 November 1947. The first set of income tax rates was introduced in the budget of 1949-50. Income up to Rs 1,500 a year was then exempt from income tax. The budget included an income tax of 4.69 per cent on income between Rs 1,501 and Rs 5,000 per annum, while income between Rs 5,001 and Rs 10,000 was subject to 10.94 per cent tax.

A person’s income between Rs 10,001 and Rs 15,000 had to pay income tax at the rate of 21.88 per cent. At that time the income tax rate was 31.25 per cent for those earning above Rs 15,001. After this, the tax slab rates keep on changing on an annual basis.

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