Government of India had increased the basic personal income tax exemption limit from Rs. 200,000 to Rs. 200,000 for Financial Year 2013-2014 and Assessment Year 2014-2015. The new income tax rates or income tax slabs were effective from April 01, 2013.
Personal Income Tax Rates in India for the Financial Year 2013-2014 and Assessment Year 2014-2015
New Delhi (Delhi, India), August 12, 2018
Indian Government Ups Basic Personal Income Tax Exemption Limit from Rs. 200,000 to Rs. 200,000
The Government of India had increased the basic personal income tax exemption limit from Rs. 200,000 to Rs. 200,000 for the Financial Year 2013-2014 and Assessment Year 2014-2015.
However, a Tax Credit of Rs. 2,000 was given for income up to Rs. 500,000 in the Financial Year 2013-2014.
The new income tax rates or Income tax slabs were applicable for the incomes earned or generated from April 01, 2013 to March 31, 2014.
Mr. Palaniappan Chidambaram, the Finance Minister of India, announced the new personal income tax slab rates while presenting the Union Budget of India, also called the Indian General Budget, on Thursday, February 28, 2013 in New Delhi.
Here are the personal income tax slab rates for calculating your income tax for the Financial Year 2013-2014 (Assessment Year 2014-2015).
I. Income Tax Slabs for the Individual (Male or Female Below 60 Years Age) for the Assessment Year 2014-2015
1. Income Tax Slab: Rs. 0 to 200,000 – Income Tax Rate Payable: Nil
2. Income Tax Slab: Rs. 200,001 to 500,000 – Income Tax Rate Payable: 10%
3. Income Tax Slab: Rs. 500,001 to 1,000,000 – Income Tax Rate Payable: 20%
4. Income Tax Slab: Rs. 1,000,001 and above – Income Tax Rate Payable: 30%
Note: In addition to the above, a Tax Credit of Rs. 2,000 will be given for income up to Rs. 500,000 in the Financial Year 2013-2014.
II. Income Tax Slabs for the Senior Citizen (Male or Female 60 to 80 Years Age) for the Assessment Year 2014-2015
1. Income Tax Slab: Rs. 0 to 250,000 – Income Tax Rate Payable: Nil
2. Income Tax Slab: Rs. 250,001 to 500,000 – Income Tax Rate Payable: 10%
3. Income Tax Slab: Rs. 500,001 to 1,000,000 – Income Tax Rate Payable: 20%
4. Income Tax Slab: Rs. 1,000,001 and above – Income Tax Rate Payable: 30%
Note: In addition to the above, a Tax Credit of Rs. 2,000 will be given for income up to Rs. 500,000 in the Financial Year 2013-2014.
III. Income Tax Slabs for the Super Senior Citizen (Male or Female Above 80 Years Age) for the Assessment Year 2014-2015
1. Income Tax Slab: Rs. 0 to 500,000 – Income Tax Rate Payable: Nil
2. Income Tax Slab: Rs. 500,001 to 1,000,000 – Income Tax Rate Payable: 20%
3. Income Tax Slab: Rs. 1,000,001 and above – Income Tax Rate Payable: 30%
Note: In addition to the above, a Tax Credit of Rs. 2,000 will be given for income up to Rs. 500,000 in the Financial Year 2013-2014.
Applicable Surcharge and Cess:
Surcharge: A surcharge of 10% on income tax amount is payable if total income is exceeding Rs. 10,000,000.
Education Cess: A 3% cess (i.e. Primary Education Cess: 2% + Secondary and Higher Education Cess: 1%) is payable on the total of Income Tax amount and Surcharge.
Calculation of an Individual’s Age and Applicable Income Tax Rates
The normal income tax rates applicable to a resident individual will depend on the age of the individual. However, in case of a non-resident individual the income tax rates will be same irrespective of his or her age.
For the purpose of ascertainment of the applicable income tax slab, an individual is classified as follows:
(1) Resident individual below the age of 60 years (i.e. he or she had born on or after April 01, 1954).
(2) Resident individual of the age of 60 years or above at any time during the year but below the age of 80 years (i.e. he or she had born during April 01, 1934 to March 31, 1954).
(3) Resident individual of the age of 80 years or above at any time during the year (i.e. he or she had born before April 01, 1934).
(4) For a non-resident individual, the income tax rates will be same irrespective of the age.
Union Budget of India 2013-2014 – Minister of Finance’s Speech
Ministry of Finance, Government of India – Finance Minister’s Budget Speech for Financial Year 2013-2014
