Which Income Tax Slab Do I Fit Into?

The end of every financial year in March sees a scramble to collect proofs of investment, submit bills to claim reimbursement for conveyance and even make tax declarations. However, most people do this with scarce awareness of how much investment they need to show in order to qualify for income tax benefits. This means that they do not make timely investments throughout the year. Thus, when the accountant announces that a large part of the salary will be deducted for taxation, it leaves people confused.

The first step is in knowing the tax slab under which one's income falls. This will help clear the confusion about how much income tax can be saved per year. As per the Union Budget 2023-2024, there were no major tax changes announced and they are largely in keeping with the tax slabs announced in the last financial year. The income tax slabs are split into categories: General, women, senior citizens and very senior citizens (80 years and above who can be show an income).

The tax slabs for the general category are:

The tax slabs for senior citizens (age 60 to 79) are as follows:

Similarly, the tax slabs for very senior citizens (age 80 and above) are as follows:

Investing To Save Tax

There are ways to bring down the taxable component of one's income so that one pays lower taxes at the end of the financial year. Birla Sun Life Insurance (ABSLI) has excellent tax saving plans that allow for tax exemption under Sec 80C of the Income Tax Act, 1961. The tax benefit* is available for premiums paid restricted up to 10% of the actual sum assured and up to Rs 1,50,000 in one financial year.

However, life insurance is not to be viewed through the prism of an investment or a tax saving option.