Upset with your income tax exemption limit? Then how about going back to 1973-74, when the effective rate at the top was 97.5 per cent and there were 11 rate slabs?
Maximum rate of income tax reduced from 5 annas to 4 annas. Wealth tax comes in.
The highest marginal rate on unearned income cut from 88.25 per cent to 81.25 per cent and that on earned income from 82.5 per cent to 74.75 per cent.
Eleven tax slabs, with rates from 10 to 85 per cent. The top marginal rate is effectively 97.75.
Finance Minister V.P. Singh (1985-87) reduces number of IT slabs to four, cuts top marginal IT rate to 50 per cent.
In five Budgets between 1991-96, FM Manmohan Singh reduces IT slabs to three (20, 30 and 40 per cent).
P. Chidambaram's 'dream budget' cuts peak rate of income tax to 30 per cent for 150k and above. Manmohan Singh, then in Opposition, criticises the rate cut.
Exemption limit raised to Rs 50k. Standard deduction raised to Rs 25k.
All surcharges abolished except surcharge at the rate of 2 per cent for the National Calamity Fund.
Two rates of personal IT slabs: 20 per cent up to Rs 4 lakh per annum and 30 per cent for income more than Rs 4 lakh.
Basic exemption limit for all assessees raised from Rs 1 lakh to Rs 1,10,000. Similar increase provided to women and senior citizens.
The Income Tax exemption limit raised by Rs 10,000 for general taxpayers and by Rs 15,000 for senior citizens. For general taxpayers, income of up to Rs 1.6 lakh per annum for men and Rs 1.90 lakh per annum for women is tax-exempt. Senior citizens will not have to pay tax up to an annual income of Rs 2.4 lakh.
Under the slabs announced by Finance Minister Pranab Mukherjee, there would be no tax on income up to Rs 1.6 lakh. Incomes between Rs 1.6 lakh and Rs 5 lakh will invite a tax of 10 per cent. For incomes between Rs 5 lakh and Rs 8 lakh, a tax of 20 per cent will be levied. Incomes of Rs 8 lakh and above will invite a tax of 30 per cent. Pranab also increased the tax saving limit from Rs 1 lakh to Rs 1.2 lakh by allowing an investment of Rs 20,000 in long-term infrastructure bonds.
Tax exemption limit raised to Rs 1.8 lakh, from Rs 1.6 lakh for individual tax papers; For senior citizens, the qualifying age reduced to 60 years and exemption limit raised to Rs 2.50 lakh; Citizens over 80 years to have exemption limit of Rs 5 lakh. A new revised income-tax return form 'Sugam' was introduced for small tax papers.