History of Income Tax
Income tax was introduced in 1860, abolished in 1873 and reintroduced in 1886. Income tax levels in India were very high during 1950-1980, in 1970-71 there were 11 tax slabs with highest tax rate being 93.5% including surcharges. In 1973-74 highest rate was 97.75%. But to reduce tax evasion tax rates were reduced later on, by 1992-93 maximum tax rates were reduced to 40%.
Comparison of Income Tax Slabs for last five years
Tax rates have reduced during last 5 years and a person earning 10 lakh per year has a reduced tax burden by Rs. 75,000
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[sociallocker id=”1679″]Thanks for sharing this post. Click to download[/sociallocker]Income Tax Slabs in Financial Years before 2008-09
| FY | Tax Free Income | Min. Tax % | Highest Tax slab | Highest Tax % |
| 1990-91 | 22,000 | 20% | 100,000 | 50% |
| 1991-92 | 22,000 | 20% | 100,000 | 50% |
| 1992-93 | 28,000 | 20% | 100,000 | 40% |
| 1993-94 | 30,000 | 20% | 100,000 | 40% |
| 1994-95 | 35,000 | 20% | 120,000 | 40% |
| 1995-96 | 40,000 | 20% | 120,000 | 40% |
| 1996-97 | 40,000 | 20% | 120,000 | 40% |
| 1997-98 | 40,000 | 10% | 150,000 | 30% |
| 1998-99 | 50,000 | 10% | 150,000 | 30% |
| 1999-00 | 50,000 | 10% | 150,000 | 30% |
| 2000-01 | 50,000 | 10% | 150,000 | 30% |
| 2001-02 | 50,000 | 10% | 150,000 | 30% |
| 2002-03 | 50,000 | 10% | 150,000 | 30% |
| 2003-04 | 50,000 | 10% | 150,000 | 30% |
| 2004-05 | 50,000 | 10% | 150,000 | 30% |
| 2005-06 | 50,000 | 10% | 150,000 | 30% |
| 2006-07 | 50,000 | 10% | 150,000 | 30% |
| 2007-08 | 110,000 | 10% | 250,000 | 30% |
Countries with Highest Income Tax Rates
- Aruba Highest Slab (58.95%)
- Sweden Highest Slab (56.6%)
- Denmark Highest Slab (55.56%)
- Netherlands Highest Slab (52%)
- Spain Highest Slab (52%)
- Finland Highest Slab (51.13%)
- Slovenia Highest Slab (50%)
- Japan Highest Slab (50%)
- Israel Highest Slab (50%)
- Belgium Highest Slab (50%)
- Austria Highest Slab (50%)
- Ireland Highest Slab (48%)
