Saturday, 16 November 2013

Income Tax Rates for A.Y 2014-15

The following INCOME TAX RATES ARE applicable for the Financial Year ending March 31, 2014 (Financial Year 2013-14)-Assessment Year 2014-15):

Every year the income tax rates are changed and it is important to get the latest income tax rates.  We give below the Income Tax Rates and Slabs applilcable for the FY 2013-14 or AS 2014-15.   The income rates and slabs for FY 2013-14 are the same as it was during FY 2012-13, except the following two major changes (frankly speaking this affects only a limited number of assesses) :-

(a)  As per Finance Act, 2013 section 87A of the Income Tax Act, 1961 additional rebate of Rs.2000/- will be given to the individual tax payer whose total does NOT  exceed Rs 5 lakhs Thus, we can say that a benefit of Rs 2000/- tax credit has been given to persons having an annual income upto Rs 5 lakh.

(b) There is a surcharge of 10% on persons whose taxable income exceeds Rs 1 crore per year. This will apply to individuals, HUFs, firms and entities with similar tax status.

Income Range
General (non-senior citizens) Category
Women (Below 60 years of age)
(This category is abolished from this year and is thus is same as that of  General Category
Senior Citizens (Men and Women above 60 years of age), but below 80 years
Very Senior Citizens (Men and Women above 80 years of age)
Upto Rs. 2,00,000
Nil
Nil
Nil
Nil
Rs. 2,00,001 to Rs. 2,50,000
10% 
10% 
Nil
Nil
Rs. 2,50,001 to Rs. 5,00,000
10% 
10% 
10% 
Nil
Rs. 5,00,001 to Rs. 10,00,000
20%
20%
20%
20%
Above Rs. 10,00,000
30% 
30% 
30% 
30%






A tax rebate of Rs 2,000 from tax calculated will be available for people having an annual income upto Rs 5 lakh.   However, this benefit of Rs2,000 tax credit will not be available if you cross the income range of Rs 5 lakh.  Thus we can say that tax payable in 10% slab will be maximum Rs28,000 (taking into account Rs 2000 tax credit), but for people who fall in income range of Rs5 lakh and above, the tax will be Rs30,000 + 20% tax on income above Rs 5 lakh;
Surcharge of 10% will be payable, if income is above Rs 1 crore

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