Income tax slab for fy 2014-15

Updated on 10th July 2014 : 1:00 PM

The Income Tax Slab for fy 2014-15 / ay 2015-16 were no different from Income tax slab for fy 13-14 in the interim budget presented by finance minister P Chidambaram  on 17th Feb 2014. But 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 met

The 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 ( see details here: section 80C deductions)

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 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)
S. No. Income Range Tax percentage
1 Up to Rs 3,00,000 No tax / exempt
2 3,00,001 to 5,00,000 10%
3 5,00,001 to 10,00,000 20%
4 Above 10,00,000 30%
New Income Tax Slabs for AY 2015-16 for Resident Senior Citizens above 80 years (FY 2014-15)
S. No. Income Range Tax percentage
1 Up to Rs 5,00,000 No tax / exempt
2 5,00,001 to 10,00,000 20%
3 Above 10,00,000 30%
New Income Tax Slabs for AY 2015-16 for Resident Women (below 60 years) (FY 2014-15)
1 Up to Rs 2,50,000 No tax / exempt
2 2,50,001 to 5,00,000 10%
3 5,00,001 to 10,00,000 20%
4 Above 10,00,000 30%
New Income Tax Slabs for AY 2015-16 for Others & Men (FY 2014-15)
1 Up to Rs 2,50,000 No tax / exempt
2 2,50,001 to 5,00,000 10%
3 5,00,001 to 10,00,000 20%
4 Above 10,00,000 30%

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 Range Tax percentage
1 Up to Rs 2,50,000 No tax / exempt
2 2,50,001 to 5,00,000 10%
3 5,00,001 to 10,00,000 20%
4 Above 10,00,000 30%
Old Income Tax Slabs for AY 14-15 for Resident Senior Citizens above 80 years (FY 2013-14)
S. No. Income Range Tax percentage
1 Up to Rs 5,00,000 No tax / exempt
2 5,00,001 to 10,00,000 20%
3 Above 10,00,000 30%
Old Income Tax Slabs for AY 14-15 for Resident Women (below 60 years) (FY 2013-14)
1 Up to Rs 2,00,000 No tax / exempt
2 2,00,001 to 5,00,000 10%
3 5,00,001 to 10,00,000 20%
4 Above 10,00,000 30%
Old Income Tax Slabs for AY 14-15 for Others & Men (FY 2013-14)
1 Up to Rs 2,00,000 No tax / exempt
2 2,00,001 to 5,00,000 10%
3 5,00,001 to 10,00,000 20%
4 Above 10,00,000 30%

 

8 comments to Income tax slab for fy 2014-15

  • DEEPAK SAXENA

    Sir, please advise income tax rebate of u/s 87a of Rs. 2000.00 is applicable or not applicable for the f. yr. 2014-15.

    Regards,

    Deepak Saxena

  • Dinesh Goyal

    Last year there was a tax credit of 2000 for those who have income less than 5 lac. Is that tax credit still there or just slab has been increased from 2 lac to 2.5 lac.

  • PERVELA PENTAIAH

    Sir,

    I have crossed Rs.1.50 Lakhs under 80C (expected calculation); 80D is utilised. What other monthly investment which are 100& exempted from IT.

  • S K DHARKAR

    This budget means the slab for Rs. 50000 only is gain that is Rs. 5000, beyond that there is no benefit. Also under section 80C the limit is raised by Rs. 50000, this means if you save then only you get another benefit of Rs. 5000, in the days of dearness in expenses, the benefit is negligible. Please let me know that what are the other benefits for senior Citizens above 69 to 80 years of age? is there any other benefit? so that in the remaining period of the FY, provisions could be made,
    please brief, Dharkar S K , Senior Citizen

  • Saqib

    Previously there was a tax credit of 2000 and virtually upto 220000 no tax was applicable .is that tax credit still there or just slab has been increased from 2 lac to 2.5 lac

  • B.vijayakumar

    if the details are given about other exemptions like medical expenses vehicle repairs and limitations to senior citizens it might have been better.Those who crossed 60 are prone for many chronic diseases and ever day they need to spend money on that If such exemptions are there pl include in the table with a separate column When ever arrears are being drawn for previous year income that should be counted as income of that particular year and tax should be calculated. some times if arrears of 2004 is rs 5000 during that year the income attained by the individual including this arrears might have not attracted the provisions of IT. when the arrears are drawn in bulk we are being taxed there is no natural justice
    it may pl be looked in to
    Thank you

  • BL Suri

    I have deposited National Saving Scheme 1987 .My annual income estimated from other sources is Rs 10 lacs. My amount under this scheme is now Rs 11.6 Lacs. How much I have to pay on withdrawal of 11.6 lacs from Post Office. If I don’t withdraw , what my heirs has to pay after my death as Tax . I want advice.

  • Nikhil A. Shravane

    Is there any additional exemptions on home loan interest apart from Rs.1,50,000/- this year too? Mr. P. Chidambaram has given very good and brilliant option to deduct Rs.1,00,000/- under section 80EE last year i.e. for FY13-14.
    So one could have save additional Rs.10,000/- in tax slab 2L to 5L.

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