1. #1
    Unregistered

    Why are tax rates and slabs are changed every year?

    I am B.Com student and understand that our Income tax rates and slabs changes every year. How does it change? Does it depend on the financial condition of the nation or an individual? Is it not necessary for us to know how does it work and on what basis it works?
    Can anybody explain me where I can get complete information on this?

  2. #2
    Chittaranjan Array
    Join Date
    Jul 2012
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    658

    Cool Re: Why are tax rates and slabs are changed every year?

    1.To give a tax releif to tax payers'.

    2.To monitor the economy better.

    3.To earn revenue as per country's need.

    4.It is also fixed to get relief from inflation.

    Due to above reasons' tax rates and slabs are changed every year.

  3. #3
    aman Array
    Join Date
    Jul 2012
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    847

    Re: Why are tax rates and slabs are changed every year?

    After every financial year depending upon the countries economic conditions tax rates and slabs are decided.
    This helps the country to generate revenue according to need .
    By changing the slabs people are benefited from the inflation effect like this year the income tax slab is increased
    so people below this slab don't have to pay tax.
    IF these tax rates and slabs won't change according to requirement the countries can have a huge economic problems/imbalance
    ultimately effecting the people of the country.

  4. #4
    abbebo Array
    Join Date
    Aug 2012
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    454

    Re: Why are tax rates and slabs are changed every year?

    Hi. The change of income tax rates and slabs every year depend upon the prerogative of the government. They usually change it for the benefit of the country's people. It mainly depends upon the economy of the country.

    But as you how corrupt our government is they can also do so for their own benefits. So you never know how it works.

    Ya we the people should deffo know how it works but i dont think it is possible in near future.

    Best of luck. Thanks

  5. #5
    bsr Array
    Join Date
    Jul 2012
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    320

    Re: Why are tax rates and slabs are changed every year?

    Hi friend,
    Yes every year tax slabs getting changed by the government. These tax rules will be declared with the budget of that financial year.

    These slabs changed based on ECONOMIC position of the country. By increasing the taxes the government will get more income to exchequer in the form of taxes. This income must be used for developement of the country.

    Yes as a citizen of India we must know what are the tax slabs this year and in which slab we will fall. Based on that we have to file income tax returns every year.

    Hope this is helpful.

    All the best!!

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