Saturday 30 March 2013

Income Tax Slab Rate-Comperative Chart




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.

1 comment:

  1. Good job, this informatin is very useful.

    Thanks Sandhya

    ReplyDelete

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