Tax rates in India

How has personal taxation evolved in India?

If one were to look at the table on personal income tax rates in India, the trend is quite shocking. Imagine those who lived in the seventies paid up to 93% of their income in taxes! And to think of it, we complain that we pay high taxes. Anyway, with the continuous rationalization of tax rates, India is only moving closer to global standards when it comes to tax rates.

Year Exemption limit (Rs) Number of Rates Entry Rate (%) Peak Rate (%) Peak rate income (Rs) 1949-50 1500 4 4.69 25 15000 1955-56 2000 5 4.93 26.25 15000 1960-61 3000 7 3.15 26.25 20000 1970-74 5000 11 11 93.5 200000 1974-75 6000 8 13.2 77 70000 1980-81 8000 8 15 66 100000 1985-86 18000 4 25 50 100000 1990-92 22000 4 20 56 100000 1995-96 40000 3 20 40 120000 1997-98 40000 3 10 30 150000 1998-99 50000 3 10 30 150000 1999-00 50000 3 10 33 150000 2000-01 50000 3 10 35.1 150000 2001-02 50000 3 10 30.6 150000 2002-03 50000 3 10 31.5 150000 2003-04 50000 3 10 30 150000 2004-05 50000 3 10 30 150000 2005-06 100000 3 10 30 250000 2006-07 100000 3 10 30 250000

Source: Report of the Task Force July 2004, Ministry of Finance, Govt. of India

How has corporate taxation evolved in India?