The highest rate of Income Tax Return (ITR) that an individual can pay is _____ of their income plus cess at 4% if their income is more than Rs.10 lakh per year.

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  1. 30%
  2. 27%
  3. 23%
  4. 33%
  5. 15%

Answer (Detailed Solution Below)

Option 1 : 30%
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The correct answer is 30%.

Key Points

  • The highest rate of Income Tax Return (ITR) that an individual can pay is 30% of their income plus cess at 4% if their income is more than Rs.10 lakh per year.
  • Income tax is a tax charged on the annual income earned by means of a person.
  • The Government of India collects income tax in the form of Direct tax and Indirect tax.
  • Income tax for FY 2022-23 applies to all residents whose annual income is more than Rs.2.5 lakh per year
  • The total amount of tax paid will depend upon how a whole lot money you earn as profits over an economic year.
  • Individuals can actually continue with Income tax, TDS/TCS charges, and Non-TDS/TCS bills and online payments. All taxpayers have to fill in the relevant information to make these payments. 
  • Article 265 of the Indian constitution deals with No tax shall be levied or collected except by authority of law.

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