BANGALORE: As they say, we are born free but are taxed to death. As for many people paying tax has become a really daunting task. For some who think the 30 per cent peak income tax rate along with an education cess of three per cent is way too high, it might feel a bit better when you will come to know about the interest tax rate before 40 years, reports Business Standard.

About forty years ago, an individual within the highest tax bracket which was above 70,000 per annum had to pay 70 per cent income tax. And, the basic exemption limit was only 6,000.

In 1974-75, there were eight tax brackets. In the '80s, things improved as the basic exemption limit was increased to 15,000 and the highest rate  which was applicable for income above 1 lakh a year was reduced to 55 per cent.

Real reforms, both in terms of tax rates and tax brackets came in the 1990s and the number of tax brackets was slashed to four and the tax rate was brought down to 40 per cent. The tax rates now stand at 10, 20 and 30 per cent, with an educational cess of three per cent when compared to 40 years ago. There is an additional 10 per cent surcharge on incomes of more than Rs 1.crore. In total, those in the top income tax bracket pay tax at the rate of 36.3 per cent.