Hello Reader,

Over the last 70 years, India and the Tax payers have come across different tax slabs since the Independence.

In this post we will see how the tax rates have changed.

To understand older tax rates, we have to know little bit about our Coin System also.

Indian Coin System:

Post-Independence, first coinage of Republic India where The King’s Portrait was replaced by the Lion Capital of the Ashoka Pillar.

The Indian Monetary System has One Rupee consisting of 192 pies.

The above system was followed till 1957.After that, Rupee is converted to decimal series. Rupee is equal to 100 Naya Paise. After 1964, the word “Naya” is dropped.

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Income Tax Slabs for Individuals for the FY 1947-48 & 1948-49

Income Tax Slabs for Individuals for the FY 1949-50 to FY 1954-55

Late finance minister, John Mathai has reduced tax on incomes up to Rs 10,000 by a quarter of an anna.(3 Pies)

Maximum rate of income tax reduced from 5 annas to 4 annas. Wealth tax comes in.

The same tax system is followed for 6 years.

Income Tax Slabs for Individuals for the FY 1955-56 to 1957-58

There comes two tax different slab system for Married and Unmarried peoples.

Income Tax Slabs for Individuals for the FY 1958-59 to FY 1962-63

The Tax Percentage system is introduced due to the Decimal series monetary system. The slabs are varied as per the count in the family.

Income Tax Slabs for Individuals for the FY 1963-64 to FY 1964-65

There is increase in Tax percentage and variation in Tax Slab also.

Income Tax Slabs for Individuals for the FY 1965-66 to FY 1967-1968

The Surcharge tax is introduced. Also, Tax slabs are Consolidated into one.

Income Tax Slabs for Individuals for the FY 1968-69

Income Tax Slabs for Individuals for the FY 1970-71 to 1973-74

Again, Zero Income Tax slab is introduced. In 1970-71, the personal income tax had 11 tax brackets with the tax rates progressively rising from 10 per cent to 85 per cent. Even if we add surcharge, the highest slab attracted 93.5 percent tax. In the year 1973-74, the people qualifying under the highest tax slab were imposed with 97.75 percent tax.

This is the Period when the highest tax rate applicable to an individual could have gone up to an astronomical level of 97.50 per cent!

Income Tax Slabs for Individuals for the FY 1974-75 & 1975-76

Few tax slabs were removed from the previous rates.

Income Tax Slabs for Individuals for the FY 1976-77 to 1981-82

Income Tax Slabs for Individuals for the FY 1982-83 & 1983-84

Income Tax Slabs for Individuals for the FY 1984-85

Income Tax Slabs for Individuals for the FY 1985-86 to 1989-90

Income Tax Slabs for Individuals for the FY 1990-91

Income Tax Slabs for Individuals for the FY 1991-92

Income Tax Slabs for Individuals for the FY 1992-93

Tax Reform Committee (TRC) advised the Indian government to reduce the tax slabs to three and hence, in the year 1992-93, the same was achieved. The tax slabs were: 20, 30 and 40 percent.

Income Tax Slabs for Individuals for the FY 1993-94

Income Tax Slabs for Individuals for the FY 1994-95

Income Tax Slabs for Individuals for the FY 1995-96

Income Tax Slabs for Individuals for the FY 1996-97

Income Tax Slabs for Individuals for the FY 1997-98

The limit of standard deduction was increased to Rs. 20,000 which was applied uniformly to all salaried taxpayers.

Income Tax Slabs for Individuals for the FY 1998-99

Exemption limit raised to Rs 50k. Standard deduction raised to Rs 25k.

Income Tax Slabs for Individuals for the FY 2000 – 2001

Income Tax Slabs for Individuals for the FY 2001 – 2002

All surcharges abolished except surcharge at the rate of 2 per cent for the National Calamity Fund.

Income Tax Slabs for Individuals for the FY 2002 – 2003

Income Tax Slabs for Individuals for the FY 2003 – 2004

Income Tax Slabs for Individuals for the FY 2004 – 2005

Income Tax Slabs for Individuals for the FY 2005 – 2006

Income Tax Slabs for Individuals for the FY 2006 – 2007

Income Tax Slabs for Individuals for the FY 2007 – 2008

Income Tax Slabs for Individuals for the FY 2008 – 2009

Income Tax Slabs for Individuals for the FY 2009 – 2010

Income Tax Slabs for Individuals for the FY 2010 – 2011

Income Tax Slabs for Individuals for the FY 2011 – 2012

Income Tax Slabs for Individuals for the FY 2012 – 2013

Exemption limit for the general category of individual taxpayers has raised from Rs 1.8 lakh to Rs 2 lakh, and the tax slabs were changed slightly.

Income Tax Slabs for Individuals for the FY 2013 – 2014

Income Tax Slabs for Individuals for the FY 2014 – 2015

With the passage of Finance Bill, 2015, wealth-tax was abolished with effect from the assessment year 2016-17. The wealth tax was replaced with a surcharge of 2 percent on the super-rich with a taxable income of above Rs 1 crore. Taxpayers, therefore, were not required to file a wealth tax return from Assessment Year 2016-17 onward.

Income Tax Slabs for Individuals for the FY 2015 – 2016

There is no change in the Basic Tax slabs.

Income Tax Slabs for Individuals for the FY 2016 – 2017

Income Tax Slabs for Individuals for the FY 2017 – 2018

Income Tax Slabs for Individuals for the FY 2018 – 2019

Income Tax Slabs for Individuals for the FY 2019 – 2020

Income Tax Slabs for Individuals for the FY 2020 – 2021:

Income Tax Slabs for Individuals for the FY 2021 – 2022:

CONCLUSION :

As we seen from the above various tax rates,

• Personal income tax rates were extraordinarily high during the decades of 1950-80.
• The personal income tax rates have steadily declined in India, with the maximum marginal rate of income tax coming down from a mind boggling 97.5 per cent to a much more manageable 35.88 per cent.
• So We shall rather complain about our Taxes, we shall know and utilize the tax system efficiently.

Happy Investing and Save Taxes.

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