Income Tax Slab Rate
Today we discuss about income tax slab rates, these were
introduced in budget proposals of that year and get implemented for the coming assessment
year like for the assessment year 2014-15 no changes is proposed in budget
proposal of 2013 except the saving in tax by Rs. 2000 on the total taxable income of up to 5,00,000. Except the benefit of Rs.
2,000 rest of the slab rates is similar to last assessment year 2013-14 there are no changes. No extra
benefits are given to senior citizen, very senior citizen or female individual.
And the Rs. 2,000 benefit is not of much useful to very senior citizen as they
have extended exemption limit of nil tax up to Rs. 5, 00,000
Let
see how it works Current Tax Tax
in Net
Amount
A.Y. 2013-14 A.Y. 2014-15 Savings
1. If you have Income
of 2, 00,000 Nil Nil -
2. If your income is
3, 00,000 10,000 8,000 2,000
3. If your income is
4, 00,000 20,000 18,000 2,000
4. If your income is
5, 00,000
30,000 28,000 2,000
Also the budget 2013-14 proposed 10% surcharge on income of those assessee who
is earning more than Rs. 1 crore annually This will be called as super rich surcharge. It includes
individual, HUF, partnership firm, AOP/BOI and LLP but not including companies.
So if you are earning Rs. 1 crore then tax will be 28.59
lakh and super rich surcharge as it named by FM in its budget speech will be
2.83 on it and total tax will be 31.13 lakh (excluding cess)
Income 1 crore
Tax on above 28.30
Super rich Surcharge @ 10 % 2.83
Total
tax payable 31.13
Comparative chart for 4 assessment year, how much does an individual
tax payer who is resident in India
saves from increased in limit of income. We need to do the in depth analysis what
we get from every year budget
Comparative Chart
Rate Nil 10% 20% 30%
Income
A.Y.2014-15 Up to 2 L
2 to 5 L 5 to 10 L 10 Lakh and above
A.Y.2013-14 Up to 2 L 2 to 5 L 5 to 10 L 10 Lakh and above
A.Y.2012-13 Up to 1.8 L 1.8 to 5 L 5 to 8 L 8 Lakh and above
A.Y. 2011-12 Up to 1.6 L 1.6 to 5 L 5 to 8 L 8 Lakh and above
Additional Tax saving
for the year maximum on higher income side
Rate A.Y.2014-15 A.Y.2013-14 A.Y.2012-13
Nil
- 2,000 2,000
10% 2,000 2,000 2,000
20%
- 40,000 -
30%
- 60,000 -
After taking a look of the chart comprised above that an
individual tax payer is not much benefited from the recent year’s budget except
the deduction part.
For Firm/Local Authority
Tax @30% plus education cess @3%
For Companies
Domestic - @30%
plus cess @ 3% and apply 5% surcharge when income exceeds Rs. 1 Cr.
Company Other than
Domestic Company - @40% plus cess @ 3% and apply 2.5% surcharge when income
exceeds Rs. 1 Cr.
Notes to Above
Note1: All the
above calculations are excluding education cess @ 3%
Note2: Surcharge have been ceased to apply in the case of
every individual, Hindu
undivided
family, firm, Association of persons and body of individuals from
the
assessment year 2010-11.
Note3: In the
A.Y. 2011-12 the exemption limit for women is 1, 90,000 and for
senior
citizen age 65 years or above had limit of 2,40,000 there are no concept
of very
senior citizen at that time.
Note4: In the
A.Y. 2012-13 the exemption limit for women did not changed at all it
was still
1, 90,000 and for senior citizen age 60 years limit of exemption
exceeded by 10,000 and it becomes 2,
50,000 in the budget of this year two
major
changes was proposed which are given below.
1. age
limit of senior citizen reduced from 65 to 60, this change
will welcome by everyone as except the
Income tax in all
other legislation, rules, regulations
the age is 60 years.
2.
Introduced the concept of very senior citizen having the age of
80
years and above and the exemption limit for them is 5, 0,000
which
was the good step.
Note5: In
assessment year 2013-14 and 2014-15 no changes was proposed except the
one
discussed above. Slab rate for men and Women are same, tax professionals
expected
that women individual get some additional benefit in tax slab.
Good job, this informatin is very useful.
ReplyDeleteThanks Sandhya