Income Tax Bill 2025: Delving into Historical Tax Rates and the Proposed New Structure
The fiscal landscape of India is poised for a significant alteration with the unveiling of the Income Tax Bill 2025. As discussions surrounding this pivotal legislation intensify, it becomes pertinent to examine the historical context of taxation within the nation, particularly the zenith of income tax rates witnessed in the annals of Indian economic history. In the year 1961, a markedly different economic paradigm prevailed. During this era, individuals fortunate enough to earn in excess of Rs 1,00,000 annually were subject to a formidable income tax rate of 70%. This figure, representing the highest tax rate levied in 1961, underscores the significantly progressive nature of the tax regime at that time.
To put this historical rate into perspective, consider the income tax slabs prevalent in 1961:
Source: Deccan Heral
Fast forward to the present day, and the proposed Income Tax Bill 2025 introduces a revised tax structure, ostensibly designed to foster economic growth and simplify compliance.
The salient features of this new tax rate regime are detailed in the following table:
Source: Deccan Herald
Article Credit: This article is based on information from the Deccan Herald article "Income Tax Bill 2025: This was the highest tax rate in 1961".