Income Tax Rates for FY 2014-15 / AY 2015-16

Income Tax Rates for FY 2014-15 / AY 2015-16

The Income Tax Slab for FY 2014-15 / AY 2015-16 in the budget presented by new Finance minister Arun Jaitley in the the new Narendra Modi Government on 10th July 2014 some of the expectations of the tax payer are metThe following are the income tax highlights as per the budget for the financial year 2014-2015

Basic exemption limit has been raised from Rs 2,00,ooo Lakhs to Rs 2,50,000. This will directly lead to Income tax savings of Rs 5,000 if your taxable income is more than 3 Lakhs.

The savings limit in section 80C has also been increased to Rs 1,50,000 from the existing Rs 1,00,000. So now you will be able to save / claim tax rebate in 80C instruments like ELSS, children tution fee, PPF, housing loan interest, NSC, ULIP, Life insurance premiums etc

Considering the two above mentioned points you can save upto Rs 10,000 in your income tax payments if you are in 10% tax bracket. People in 20% tax bracket can save upto Rs 15,000 and 30% bracket upto Rs 20,000.

 

Due to increase in exempt limit there will be change in 10% slab, 20% and 30% slab rates they remain the same. The new 10% slab will be from Rs, 2,50,000 to Rs 5,00,000 instead of previous slab of Rs 2,00,000 to Rs 5,00,000. The 20% slab is from 5,00,001 to Rs 10,00,000 and 30% tax slab starts from Rs 10,00,001

The tax exemption limit for senior citizens above 60 years of age has also been increased from Rs 2,50,000 to Rs 3,00,000.

In new tax structure tax exemption of Rs. 20,000 on investment in tax saving Infrastructure bonds is also maintained and there is no change in this as compared to previous year. This is in addition to exemption of up to Rs. 1, 50,000 already allowed under specific savings instruments.

The new and revised income tax slabs and rates applicable for the financial year (FY) 2014-15 and assessment year (AY) 2015-16 are mentioned below:

New Income Tax Slabs for AY 2015-16 for Resident Women (below 60 years) (FY 2014-15)
1Up to Rs 2,50,000No tax / exempt
22,50,001 to 5,00,00010%
35,00,001 to 10,00,00020%
4Above 10,00,00030%
New Income Tax Slabs for AY 2015-16 for Others & Men (FY 2014-15)
1Up to Rs 2,50,000No tax / exempt
22,50,001 to 5,00,00010%
35,00,001 to 10,00,00020%
4Above 10,00,00030%

New Income tax slab for FY 2014-15 / AY 2015-16

New Income Tax Slabs for AY 2015-16 for Resident Senior Citizens above 60 years (FY 2014-15)
  1. S. No.
Income RangeTax percentage
1Up to Rs 3,00,000No tax / exempt
23,00,001 to 5,00,00010%
35,00,001 to 10,00,00020%
4Above 10,00,00030%
New Income Tax Slabs for AY 2015-16 for Resident Senior Citizens above 80 years (FY 2014-15)
  1. S. No.
Income RangeTax percentage
1Up to Rs 5,00,000No tax / exempt
25,00,001 to 10,00,00020%
3Above 10,00,00030%

For normal category the simple calculation is as follows

  • Taxable Income in 10% slab maximum tax will be Rs 25000
  • Taxable Income in 20% slab maximum tax will be Rs 25000 + Rs 1,00,000 total Rs 1,20,000
  • Taxable Income in 30% slab minimum tax will be Rs Rs 1,50,000

Education and other cess will be in addition to this.

As a reference the income tax rates for the previous year 2013-14 assessment year 2014-15 were as follows. You will be filing these returns this year. Please note that the late date for filing of income tax is 31st July 2014

Old Income Tax Slab for FY 2013-14 / AY 2014-15

Old Income Tax Slabs for AY 14-15 for Resident Senior Citizens above 60 years (FY 2013-14)
S. No.Income RangeTax percentage
1Up to Rs 2,50,000No tax / exempt
22,50,001 to 5,00,00010%
35,00,001 to 10,00,00020%
4Above 10,00,00030%
Old Income Tax Slabs for AY 14-15 for Resident Senior Citizens above 80 years (FY 2013-14)
S. No.Income RangeTax percentage
1Up to Rs 5,00,000No tax / exempt
25,00,001 to 10,00,00020%
3Above 10,00,00030%
Old Income Tax Slabs for AY 14-15 for Resident Women (below 60 years) (FY 2013-14)
1Up to Rs 2,00,000No tax / exempt
22,00,001 to 5,00,00010%
35,00,001 to 10,00,00020%
4Above 10,00,00030%
Old Income Tax Slabs for AY 14-15 for Others & Men (FY 2013-14)
1Up to Rs 2,00,000No tax / exempt
22,00,001 to 5,00,00010%
35,00,001 to 10,00,00020%
4Above 10,00,00030%

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