23 May 2014
The following INCOME TAX RATES are applicable for the Financial Year ending March 31, 2014 (Financial Year 2013-14)-Assessment Year 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 1.General (non-senior citizens) Category Upto Rs. 2,00,000 = Nil Rs. 2,00,001 to Rs. 5,00,000 = 10%* Rs. 5,00,001 to Rs. 10,00,000 = 20% Above Rs. 10,00,000 = 30% **
2.Women (Below 60 years of age) This category is abolished from this year and is thus is same as that of General Category Upto Rs. 2,00,000 = Nil Rs. 2,00,001 to Rs. 5,00,000 = 10%* Rs. 5,00,001 to Rs. 10,00,000 = 20% Above Rs. 10,00,000 = 30% **
3.Senior Citizens (Men and Women above 60 years of age), but below 80 years Upto Rs. 2,50,000 = Nil Rs. 2,50,001 to Rs. 5,00,000 = 10%* Rs. 5,00,001 to Rs. 10,00,000 = 20% Above Rs. 10,00,000 = 30% **
4.Very Senior Citizens (Men and Women above 80 years of age) Upto Rs. 5,00,000 = Nil Rs. 5,00,001 to Rs. 10,00,000 = 20% Above Rs. 10,00,000 = 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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