Budget 2014: Income Tax Slab Rate for FY 13-14 & 14-15

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Income Tax Slab Rates for Financial Year 2014-15 have been amended by the Budget 2014. The basic exemption limit has been increased from Rs 2 Lakh to Rs. 2.5 Lakh and for Senior Citizens from Rs. 2.5 Lakh to Rs. 3 Lakhs.

The Income Tax Slab Rates for both Financial Year 2013-14 i.e. A/Y 2014-15 and as well as Financial Year 2014-15 i.e. Assessment Year 2015-16 have been shared below in this article. The Income Tax Slab can be divided in the following categories:-

A.INDIVIDUALS & HUF

  1. For Male Individuals below 60 Years of Age and HUF
  2. For Female Individuals below 60 Years of Age
  3. For all Senior Citizen above 60 years of Age
  4. For all Super Senior Citizen above 80 years of Age

B. BUSINESSES

  1. Co-operative Society
  2. Firms, Local Authority & Domestic Company

INCOME TAX SLABS RATES

A. FOR INDIVIDUALS & HUF

The following Income Tax Slabs are applicable for the Financial Year 2013-14 i.e. A/Y 2014-15 and Financial Year 2014-15 i.e. Assessment Year 2015-16. Education Cess @ 2% and SHEC @ 1% shall be levied on the Tax computed using the Income Tax Rates given below while filing the Income Tax Return. No Surcharge is applicable in case of Individuals and HUF’s.

It is pertinent to be noted that Budget 2013 introduced Section 87A which provides Income Tax Rebate of Rs. 2000 for all Individuals earning Income less than Rs. 5 Lakh in a Year.

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1. For Male Individuals below 60 years of age & HUF

Income Tax Slabs Income Tax Rates
Where Total Income does not exceed Rs. 2,00,000 NIL
Where the Total Income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000 10% of the Amount by which it exceeds Rs. 2,00,000
Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20% of the Amount by which it exceeds Rs. 5,00,000
Where the Total Income exceeds Rs. 10,00,000 30% of the Amount by which it exceeds Rs. 10,00,000

For the Financial Year 2014-15, the words Rs. 2,00,000 should be replaced by Rs. 2.5 Lakhs (Amended introduced by Budget 2014)

2. For Female Individuals below 60 years of Age

Income Tax Slabs for Males and Females are the same and are as follows:-

Income Tax Slabs Income Tax Rates
Where Total Income does not exceed Rs. 2,00,000 NIL
Where the Total Income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000 10% of the Amount by which it exceeds Rs. 2,00,000
Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20% of the Amount by which it exceeds Rs. 5,00,000
Where the Total Income exceeds Rs. 10,00,000 30% of the Amount by which it exceeds Rs. 10,00,000

3. For all Senior Citizens above 60 years of Age

Income Tax Slabs Income Tax Rates
Where Total Income does not exceed Rs. 2,50,000 NIL
Where the Total Income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 10% of the Amount by which it exceeds Rs. 2,50,000
Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20% of the Amount by which it exceeds Rs. 10,00,000
Where the Total Income exceeds Rs. 10,00,000 30% of the Amount by which it exceeds Rs. 10,00,000

For the Financial Year 2014-15, the words 2,50,000 mentioned above should be replaced by Rs. 3,00,000 (Amended by Interim Budget 2014 presented by Finance Minister Arun Jaitley).

4. For all Senior Citizens above 80 Years of Age

Income Tax Slabs Income Tax Rates
Where Total Income does not exceed Rs. 5,00,000 NIL
Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20% of the Amount by which it exceeds Rs. 5,00,000
Where the Total Income exceeds Rs. 10,00,000 30% of the Amount by which it exceeds Rs. 10,00,000

Computation of Age

If an Individual attains the age of 60 years or 80 years during the financial year, his age shall be regarded as 60/80 (as the case may be), for that whole Financial Year.

After the computation of Total Tax Payable computed as per the Income Tax Slabs, the Balance Income Tax payable after the deduction of TDS as shown in Form 16/Form 16A and reflected in Form 26AS shall be payable vide Challan No. 280 in the form of Advance Tax in Installments before the specified Due Dates or else Interest on delay in payment of Income Tax would be liable to be paid.

income tax slabs Budget 2014: Income Tax Slab Rate for FY 13 14 & 14 15

B. SLABS FOR BUSINESS

The following Income Tax Slab Rates shall be applicable for the Assessment Year 2014-15 i.e Previous Year 2013-14. Education Cess @ 2% and SHEC @1% shall be levied on the Income Tax so computed.

1. For Co-operative Society

Income Tax Slabs Income Tax Rates
Where the Total Income does not exceed Rs. 10,000 10% of the Income
Where the Total Income exceeds Rs. 10,000 but does not exceed Rs. 20,000 20% of the Amount by which it exceeds Rs. 10,000
Where the Total Income exceeds Rs. 20,000 30% of the Amount by which it exceeds Rs. 20,000

2. For Firms, Local Authority and Domestic Company

Income Tax Slab Rates wont apply in this case and Tax @ 30% flat shall be computed on the Total Income. Surcharge shall not be levied on Income of Firms and Local Authorities but shall be levied on the Total Income Tax of Domestic Companies @ 5% provided that the Total Income of the Domestic Company exceeds Rs. 1 Crore.

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