Finology
Finology

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


Budget – 2014 has proposed the following income tax rates

For Individuals below 60 years age (including Woman Assessees): 

Income

Tax Rate

Upto 2,50,000

Nil

250,000 to 5,00,000

10% of the amount exceeding 250,000

500,000 to 10,00,000

Rs.25,000 + 20% of the amount exceeding 5,00,000

10,00,000 & above

Rs.1,25,000 + 30% of the amount exceeding 10,00,000


For Individuals aged 60 years and above but below 80 years (Senior Citizen):

Income

Tax Rate

Upto 3,00,000

Nil

3,00,000 to 5,00,000

10% of the amount exceeding 3,00,000

5,00,000 to 10,00,000

Rs.20,000 + 20% of the amount exceeding 5,00,000

10,00,000 & above

Rs.1,20,000 + 30% of the amount exceeding 10,00,000


For Individuals aged 80 years and above (Very Senior Citizen):

Income

Tax Rate

Upto 5,00,000

Nil

5,00,000 to 10,00,000

20% of the amount exceeding 5,00,000

10,00,000 & above

Rs.1,00,000 + 30% of the amount exceeding 10,00,000

Plus 3% education cess on the tax calculated as above.  Further, limit to get deduction under section 80C is increased to Rs. 1,50,000/- from Rs. 1,00,000/-

Now, we will study certain income scenarios based on above mentioned budget proposals.

Person with Age of less than 60 years

scenario - 1

scenario - 2

scenario - 3

scenario - 4

Gross Total Income

2,70,000

3,70,000

4,20,000

4,20,000

Less:Deductions u/s. 80C
Eligible upto Rs. 1,50,000/-

0

1,00,000

1,00,000

1,50,000

Taxable Income

2,70,000

2,70,000

3,20,000

2,70,000

Tax on above income

2,000

2,000

7,000

2,000

Less: Rebate u/s 87A

2,000

2,000

2,000

2,000

Tax after Rebate

0

0

5,000

0

Add: Education Cess 3%

0

0

150

0

Total Tax Liability

0

0

5,150

0

Person with Age of 60 years or more but less than 80 years

scenario - 1

scenario - 2

scenario - 3

scenario - 4

Gross Total Income

3,20,000

4,20,000

4,70,000

4,70,000

Less:Deductions u/s. 80C
Eligible upto Rs. 1,50,000/-

0

1,00,000

1,00,000

1,50,000

Taxable Income

3,20,000

3,20,000

3,70,000

3,20,000

Tax on above income

2,000

2,000

7,000

2,000

Less: Rebate u/s 87A

2,000

2,000

2,000

2,000

Tax after Rebate

0

0

5,000

0

Add: Education Cess 3%

0

0

150

0

Total Tax Liability

0

0

5,150

0

Person with Age of 80 years or more

scenario - 1

scenario - 2

scenario - 3

scenario - 4

Gross Total Income

5,00,000

5,10,000

6,10,000

6,60,000

Less:Deductions u/s. 80C
Eligible upto Rs. 1,50,000/-

0

0

1,00,000

1,50,000

Taxable Income

5,00,000

5,10,000

5,10,000

5,10,000

Tax on above income

0

2,000

2,000

2,000

Less: Rebate u/s 87A

0

0

0

0

Tax after Rebate

0

2,000

2,000

2,000

Add: Education Cess 3%

0

60

60

60

Total Tax Liability

0

2,060

2,060

2,060

To calculate the tax for other scenarios, you may use the tax calculator.

Author:

CA. Tejas K. Andharia

B. COM, F.C.A., D.I.S.A.(ICAI),  D.I.R.M.(ICAI)  

Bhavnagar, Gujarat

Email: tejasinvites@gmail.com


 

Published by

CA Tejas Andharia
(CA.)
Category Others   Report

  50 Shares   13224 Views

Comments


Follow


Popular Articles




Follow taxation Exam20 Book Book Book caclubindia books


CCI Articles

submit article

Stay updated with latest Articles!




update