An entity whose income exceeds the “maximum amount”, which is not chargeable to the income tax, is an assessee, and shall be chargeable to the income tax at the rate or rates prescribed under the finance act for the relevant assessment year, shall be determined on basis of his residential status.
Income tax is a tax payable, at enacted by the Union Budget (Finance Act) for every Assessment Year, on the Total Income earned in the Previous Year by every Person.
The chargeability is based on nature of income, i.e., whether it is revenue or capital. The rates of taxation of income are-:
Income Tax Slabs and Rates for the Assessment Year 2016-17 (applicable on income earned during 01.04.2015 to 31.03.2016) for various categories of Indian Income Tax payers.
Income Tax Slab Rates :
In India, tax on one's income is charged in a manner that as the taxpayer's income increases, he is required to contribute more portion of his earned income in the form of taxes to the government, who is supposed to use those funds accumulated from collection of taxes from the taxpayers for the betterment of the public at large.
Under this tax structure, income is categorized into different groups and the criteria for grouping is the amount of income. Each such group is known as Tax Slab. Tax is charged at different rates on the range of income falling under different tax slabs.