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Thursday, February 28, 2013

Income tax rates for financial year 2013-14 and analysis year 2014-15


People always curious with income tax slabs on the budget dat as some change in income tax slabs and how much one gain with it. But there is no changes in the income tax slabs gfor the financial year 2013-14 and the analysis year 2014-15. There is minor relief to the middle class whose income range in between 200000-500000 bracket. A tax rebate of 2000 will be available to this bracket income. There is one surcharge has been imposed on the income above 1 crore and surcharge will be 10%.

Rebate of 2000
This rebate is only available to 200000-500000 income bracket. If the income level is above 5 lakh, this rebate will not implement. Suppose one has the income of 220000 in the financial year 2013-14, the tax slabs is 10% on the income range between 2 lakh to 5 lakh. So the liability of income tax is 2000 and this will exempted in this rebate. This rebate is maximum of income tax payable or 2000 rupees whichever is less. Section 87 of income tax act will be consequentially amended.


 The new income tax slabs for the financial year 2013-14 and the analysis year 2014-15 are as follows.

A. Normal Rates of tax:

Total Income
Rate of tax
Where the total income does not exceed Rs.   2,00,000/-.
      Nil
Where the total income exceeds Rs. 2,00,000
but does not exceed Rs. 5,00,000/-.                  
       10 per cent of the amount by which the total income exceeds Rs. 2,00,000/-
Where the total income exceeds Rs. 5,00,000/-        but does not exceed Rs. 10,00,000/-.
      Rs. 30,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
Where the total income exceeds Rs. 10,00,000/-.
    Rs. 1,30,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-
B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year:

Sl. No
Total Income
Rate of tax
1
Where the total income does not exceed Rs. 2,50,000/-.
Nil
2
Where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000/-.
   10 per cent of the amount by which the total income exceeds Rs. 2,50,000/-
3
Where the total income exceeds Rs. 5,00,000/-  but does not exceed Rs. 10,00,000/-.
        Rs. 25,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
4
Where the total income exceeds Rs. 10,00,000/-.
      Rs. 1,25,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-
C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

Sl. No
Total Income
Rate of tax
1
Where the total income does not exceed Rs. 5,00,000/-.
 Nil
2
Where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000/-.
    20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-
3
Where the total income exceeds Rs. 10,00,000/-.
   Rs. 1,00,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-
-          Surcharge on Income tax:
There will be no surcharge on income tax payments by individual taxpayers during FY 2013-14 (AY 2014-15).

-          Education Cess on Income tax:
The amount of income-tax shall be increased by Education Cess on Income Tax at the rate of two per cent of the income-tax.

-          Secondary and Higher Education Cess on Income-tax:
From Financial Year 2007-08 onwards, an additional surcharge is chargeable at the rate of one per cent of income-tax (not including the Education Cess on income-tax).

-         There is a rebate of 2000 rupees for the income bracket of 200000-500000. This rebate is maximum of 2000 or income tax payable whichever is less.
-          
Education Cess, and Secondary and Higher Education Cess are payable by both resident and nonresident assessees.
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