What is the TDS & Income Tax Slab

Question

Accepted Answer

TDS is a tax deducted at source while Income Tax Slab is the range of income on which tax is levied.

TDS is a tax deducted by the payer at the time of making payment to the payee.
It is applicable to various types of payments such as salary, interest, rent, commission, etc.
The rate of TDS varies depending on the type of payment and the income of the payee.
Income Tax Slab is the range of income on which tax is levied.
It is divided into different slabs based on the income level of the individual.
The tax rate increases as the income level increases.
For example, for the financial year 2021-22, the income tax slab for individuals below 60 years is as follows: up to Rs. 2.5 lakhs - no tax, Rs. 2.5 lakhs to Rs. 5 lakhs - 5%, Rs. 5 lakhs to Rs. 7.5 lakhs - 10%, Rs. 7.5 lakhs to Rs. 10 lakhs - 15%, Rs. 10 lakhs to Rs. 12.5 lakhs - 20%, Rs. 12.5 lakhs to Rs. 15 lakhs - 25%, above Rs. 15 lakhs - 30%.

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