Generally, income tax systems are progressive, meaning a high income earner has to pay a higher
rate. Tax systems vary from country to country; however, often tax systems contain numerous tax
slabs or brackets in them. In most of the countries, the individual is categorized under a specific tax
bracket according to his annual income. For each slab, the rate is different.
Example: Individual taxpayer slabs in India
Basic exemption limit: This is the most basic amount that appears to be of income, say
INR 2.5 lakhs. This is completely exempt from tax.

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