Budget 2025, Feb. 1 -- In India, the maximum income tax rate is 30 percent for those in the highest income bracket before a surcharge of up to 25 or 37 percent depending on which regime (new or old) and a 4 percent cess on the combined figure.

In Budget 2023, government had cut down maximum surcharge from 37 percent to 25 percent for those filing return as per the new tax regime.

This practically inflates the total income tax rate to 39 percent in the new tax regime or 42.7 percent in the old tax regime.

Let us compare these tax rates to the income tax charged by the governments in other countries.

USA: The tax rates range between 10 percent to 37 percent depending on how much you are earning. The highest income tax rate is applied on...