History of Income Tax Slabs in India
We all hate paying taxes, but like death taxes too are unavoidable! You may not know this but not very long ago (FY 1991-92) the minimum tax rate in India was 20% and the maximum 56%. So if you were in highest tax slab, you would more than half of your income to government, giving great incentive for not complying with tax laws and not to earn more!
Thankfully taxes have been bit rationalized, Now the high earners only need to pay one-third of their income as taxes (still high but seems low when compared historically)!
Below is the table showing the following since FY 1990-91:
| Financial Year | Minimum Income for Tax | Lowest Tax Rate | Income at which Highest Tax Rate Starts | Highest Tax Rate | Highest Tax Including Surcharge |
| 1990 – 91 | 22,000 | 20% | 100,000 | 50% | 56.00% |
| 1991 – 92 | 22,000 | 20% | 100,000 | 50% | 56.00% |
| 1992 – 93 | 28,000 | 20% | 100,000 | 40% | 44.80% |
| 1993 – 94 | 30,000 | 20% | 100,000 | 40% | 44.80% |
| 1994 – 95 | 35,000 | 20% | 120,000 | 40% | 44.80% |
| 1995 – 96 | 40,000 | 20% | 120,000 | 40% | 40.00% |
| 1996 – 97 | 40,000 | 20% | 120,000 | 40% | 40.00% |
| 1997 – 98 | 40,000 | 10% | 150,000 | 30% | 30.00% |
| 1998 – 99 | 50,000 | 10% | 150,000 | 30% | 33.00% |
| 1999 – 00 | 50,000 | 10% | 150,000 | 30% | 34.50% |
| 2000 – 01 | 50,000 | 10% | 150,000 | 30% | 30.60% |
| 2001 – 02 | 50,000 | 10% | 150,000 | 30% | 31.50% |
| 2002 – 03 | 50,000 | 10% | 150,000 | 30% | 33.00% |
| 2003 – 04 | 50,000 | 10% | 150,000 | 30% | 33.60% |
| 2004 – 05 | 50,000 | 10% | 150,000 | 30% | 33.60% |
| 2005 – 06 | 50,000 | 10% | 150,000 | 30% | 33.60% |
| 2006 – 07 | 50,000 | 10% | 150,000 | 30% | 33.60% |
| 2007 – 08 | 110,000 | 10% | 250,000 | 30% | 33.90% |
| 2008 – 09 | 110,000 | 10% | 250,000 | 30% | 33.90% |
| 2009 – 10 | 160,000 | 10% | 500,000 | 30% | 33.90% |
| 2010 – 11 | 160,000 | 10% | 500,000 | 30% | 30.90% |
| 2011 – 12 | 180,000 | 10% | 800,000 | 30% | 30.90% |
| 2012 – 13 | 200,000 | 10% | 1,000,000 | 30% | 30.90% |
| 2013 – 14 | 200,000 | 10% | 1,000,000 | 30% | 33.99% |
| 2014 – 15 | 250,000 | 10% | 1,000,000 | 30% | 33.99% |
| 2015 – 16 | 250,000 | 10% | 1,000,000 | 30% | 34.61% |
| 2016 – 17 | 250,000 | 10% | 1,000,000 | 30% | 35.54% |
| 2017 – 18 | 250,000 | 5% | 1,000,000 | 30% | 35.54% |
| 2018 – 19 | 250,000 | 5% | 1,000,000 | 30% | 35.88% |
| 2019-20 | 250,000 | 5% | 1,000,000 | 30% | 35.88% |
Below are recent detailed tax slabs for recent years:
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View Comments
Barring everything else done by the Finance Dept, the Taxation system seems fair and balanced. The fact that the top tax bracket paid 50%< is frankly shocking to hear. No wonder the practice of stashing away wealth offshore became such a point of contingent. There is also a very cleaver omission of the 1%, who basically encapsulate nearly 70% of the wealth in India. That is the bracket which should be taxed more comprehensively and aggressively I must say.
HI SIR ,
i had a small doubt .whether the 25000 income is refered per month or per anum ?
Kindly verify my doubt sir
It's annual income.
Sir, please also favour me with 20 years income tax slab details on my e mail id:m.purohit_12@yahoo.in URGENTLY PLEASE.. THANK YOU.
Dear Amit,
Can you please give details for tax saving regarding payment of maid of servent.
I am not aware of any such deduction allowed for salaried people. In case you employee maid for commercial/business income - her salary would be deducted as business expenses
Excellent information. I felt happy it is a feel good factor. FM can feel proud with this data/post. Keep it up
Yes! there is no doubt the taxes have become more rational than it was. But still there is scope of lot of improvement. Direct tax code was step in the right direction but it has already been modified and still its Work in progress!
Dear Sir, I had read he report "Income Tax Slabs History in India" which gives various details from 1991. A special reuest: As I have to urgently put up a claim to IT Dept for Refund (related to previous 20 years) can you please send me the details of entire IT Slabs / Surcharge etc from 1991 upto date. It will be very much helpful.
Thanks and kind Regards
R. Murugaiyan
E-Mail : murugaiyan.r@gmail.com
MURUGAIYAN
Your issue seems complicated and I would advice you to contact an expert on tax laws or a CA and help you file your IT returns for 20 years. In the mean time I might try to get you 20 years Income tax slab details.