Income Tax Slab 2014-2015

Every year with Government budget, the most common expectation an Indian citizen has is of ‘change for better’ in the Income tax slab. Income tax has been one of the oldest forms of tax, and it has been present from generations, and is never likely to disappear. So to plan your investment strategy and understand how much tax liability you will incur this year let’s have a look at the tax structure for different categories. These categories are created by the Government of India for taxation purposes, and they are based on Gender and Age.

Categories for Income Tax Slab :

  1. Male/Female Individual below 60 years of age, and HUF (Hindu undivided Family)
  2. All individuals over 60 years of age but under 80 years (Senior citizen)
  3. All individuals over 80 years of age (Super Senior citizen)

Category A:

  • Gender: Male /Female
  • Age: Under 60 years for the current financial year. (How to compute age for tax purpose)
  • Date of birth: If you are born on or after 01st April 1955

Income Tax Slab for you :

Income Tax Slabs (Your Taxable income in this financial year) Income Tax Rates Example(Mr. Raj’s taxable income is Rs 15,00,000 in this year. Let’s look at his tax liability)
Rs 0 – Rs 2,50,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 – Rs 5,00,000 10% on amount exceeding Rs 2,50,000 Rs 2,50,001 – 5,00,000 Rs 25,000
Rs 5,00,001 – Rs 10,00,000 20% on amount exceeding Rs 5,00,000 Rs 5,00,001 – 10,00,000 Rs 1,00,000
Rs 10,00,001 or more 30% on amount exceeding Rs 10,00,000 Rs 10,00,001 & more Rs 1,50,000
Education Cess Payable: 3% of the Income-tax Education Cess payable Rs 8,250
  Total Tax liability on Rs 15,00,000 for Mr. Raj Rs 2,83,250

A rebate of Rs 2000 will be available for individuals with income less than Rs 5 lakhs u/s 87A

Category B: (Senior Citizen)

  • Gender: Male/Female
  • Age: Over 60 years, but less than 80 years for the current financial year. (How to compute age for tax purpose)
  • Date of birth: If you are born between 01st April 1935 – 31st March 1955 both dates included

Income Tax Slab for you:

Income Tax Slabs (Your Taxable income in this financial year) Income Tax Rates Example (Mrs. Smita Shah’s taxable income is Rs 12,00,000 in this year. Let’s look at her tax liability)
Rs 0 – Rs 3,00,000 NIL Upto Rs 3,00,000 NIL
Rs 3,00,001 – Rs 5,00,000 10% on amount exceeding Rs 3,00,000 Rs 3,00,001 – 5,00,000 Rs 20,000
Rs 5,00,001 – Rs 10,00,000 20% on amount exceeding Rs 5,00,000 Rs 5,00,001 – 10,00,000 Rs 1,00,000
Rs 10,00,001 or more 30% on amount exceeding Rs 10,00,000 Rs 10,00,001 & more Rs 60,000
Education Cess Payable: 3% of the Income-tax Education Cess payable Rs 5,400
  Total Tax liability of Mrs. Shah Rs 1,85,400

A rebate of Rs 2000 will be available for individuals with income less than Rs 5 lakhs u/s 87A

Category C: (Super Senior citizen)

  • Gender: Male/Female
  • Age: Over 80 years for the current financial year. (How to compute age for tax purpose)
  • Date of birth: If you are born on 31st March 1935 or earlier

Income Tax Slab for you :

Income Tax Slabs (Your Taxable income in this financial year) Income Tax Rates Example (Mr. Dhule’s taxable income is Rs 11,00,000 in this year. Let’s look at his tax liability)
Rs 0 – Rs 5,00,000 NIL Upto Rs 5,00,000 NIL
Rs 5,00,001 – Rs 10,00,000 20% on amount exceeding Rs 5,00,000 Rs 5,00,001 – 10,00,000 Rs 1,00,000
Rs 10,00,001 or more 30% on amount exceeding Rs 10,00,000 Rs 10,00,001 & more Rs 30,000
Education Cess Payable: 3% of the Income-tax Education Cess payable Rs 3,900
  Total Tax liability of Mr. Dhule Rs 1,33,900

A rebate of Rs 2000 will be available for individuals with income less than Rs 5 lakhs u/s 87A

Dont forget to use below given INCOME TAX CALCULATOR

How to compute age for tax purposes:

If you attain the age of 60 years (senior citizen) or 80 years (super senior citizen) during this financial year, your age will be regarded as 60 years/ 80 years as the case maybe. Let us look at this with the help of two examples

Mr. Amit Shah, and his wife Mrs. Disha Shah, both need to file their tax returns for this financial year. Mr. Shah’s date of birth (D.O.B) is 02nd February 1955, while Mrs. Shah’s date of birth is 14th July 1955. As per Income tax guidelines, we need to calculate ages of all tax payers, as on 31st March on that financial year to determine their age for tax computation purposes.

Current Financial Year is 01st April 2014 – 31st March 2015

Let’s look at Mr. Amit Shah’s age, since his D.O.B is 02/02/1955, he will be 60 years old on 02/02/2015. This means that he will attain the age of 60 years within this financial year. Hence Mr. Amit Shah, can avail the benefits of Senior Citizen Income Tax slab.

Now let’s look at Mrs. Disha Shah’s age. Her D.O.B is 14/07/1955. Hence she will be 60 years old on 14/07/2015. This means that when this financial years ends (i.e on 31st March 2015) Mrs. Shah’s age will be under 60 years. Hence as per Income tax guidelines, for this financial year Mrs. Disha Shah will have to file tax as per Category A guidelines, as individual under 60 years.

Tax Jargon’s for you :

Current Financial Year: 01st April 2014 – 31st March 2015

Assessment Year: 2015-2016

Taxable Income:This is calculated as follows

Other Details :

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