Budget 2015 Update: Finance Minister Arun Jaitley announced the Budget 2015 on 28th Feb and announced that an individual taxpayer can now claim exemption from Income Tax for Income upto Rs. 4,44,200.
However, he didn’t announce the Slab Rates. A careful read of the Memorandum to the Budget indicates that there is no change in the Slab Rates applicable for 2015-16. The Slab Rates for 2014-15 and 2015-16 are the same.
The Finance Minister very smartly announced that individual taxpayers can claim exemption from Income Tax upto 4,44,200. While announcing this, he had kept into account the various deductions that are allowed to a taxpayer under Section 80C, Section 80D etc. However, there has been no change in the Income Tax Slabs. The applicable Income Tax Slab Rates are detailed below
Income Tax Slab Rates for 2014-15 & 2015-16
The Income Tax Slab Rates for 2014-15 &
2015-16 are the same. The Income Tax Slab Rates are different for different
categories of taxpayers.
The Income Tax Slab Rates can be divided in the
following categories:-
A.INDIVIDUALS &
HUF
- For Male Individuals below 60 Years of Age and HUF
- For Female Individuals below 60 Years of Age
- For all Senior Citizen above 60 years of Age
- For all Super Senior Citizen above 80 years of Age
B. BUSINESSES
- Co-operative Society
- Firms, Local Authority & Domestic Company
Income Tax Slab Rates
A. FOR INDIVIDUALS
& HUF
The following Income Tax Slabs are applicable for
the Financial Year 2014-15 i.e. Assessment Year 2015-16 as well as
Financial Year 15-16 i.e. Assessment Year 16-17. Education Cess @ 2%
and SHEC @ 1% shall be levied on the Tax computed using the Income Tax Rates
given below while filing
the Income Tax Return. No Surcharge is applicable in case of Individuals
and HUF’s.
It is pertinent to be noted that Budget
2013 introduced Section 87A which provides Income Tax Rebate of
Rs. 2000 for all Individuals earning Income less than Rs. 5 Lakh in a Year.
Recommended Read:
- Income
Tax Rebate of Rs. 2000 under Section 87A
- Difference between Income Tax Deduction vs Rebate vs
Relief
1. For Male
Individuals below 60 years of age & HUF
|
Income Tax Slabs
|
Income Tax Rates
|
|
Where Total Income does not exceed Rs. 2,50,000
|
NIL
|
|
Where the Total Income exceeds Rs. 2,50,000 but does not
exceed Rs. 5,00,000
|
10% of the Amount
by which it exceeds Rs. 2,50,000
|
|
Where the Total Income exceeds Rs. 5,00,000 but does not
exceed Rs. 10,00,000
|
20% of the Amount
by which it exceeds Rs. 5,00,000
|
|
Where the Total Income exceeds Rs. 10,00,000
|
30% of the Amount
by which it exceeds Rs. 10,00,000
|
2. For Female
Individuals below 60 years of Age
Income Tax Slabs for Males and Females are the
same and are as follows:-
|
Income Tax Slabs
|
Income Tax Rates
|
|
Where Total Income does not exceed Rs. 2,50,000
|
NIL
|
|
Where the Total Income exceeds Rs. 2,50,000 but does not
exceed Rs. 5,00,000
|
10% of the Amount
by which it exceeds Rs. 2,50,000
|
|
Where the Total Income exceeds Rs. 5,00,000 but does not
exceed Rs. 10,00,000
|
20% of the Amount
by which it exceeds Rs. 5,00,000
|
|
Where the Total Income exceeds Rs. 10,00,000
|
30% of the Amount
by which it exceeds Rs. 10,00,000
|
3. For all Senior
Citizens above 60 years of Age
|
Income Tax Slabs
|
Income Tax Rates
|
|
Where Total Income does not exceed Rs. 3,00,000
|
NIL
|
|
Where the Total Income exceeds Rs. 3,00,000 but does not
exceed Rs. 5,00,000
|
10% of the Amount
by which it exceeds Rs. 3,00,000
|
|
Where the Total Income exceeds Rs. 5,00,000 but does not
exceed Rs. 10,00,000
|
20% of the Amount
by which it exceeds Rs. 10,00,000
|
|
Where the Total Income exceeds Rs. 10,00,000
|
30% of the Amount
by which it exceeds Rs. 10,00,000
|
4. For all Senior
Citizens above 80 Years of Age
|
Income Tax Slabs
|
Income Tax Rates
|
|
Where Total Income does not exceed Rs. 5,00,000
|
NIL
|
|
Where the Total Income exceeds Rs. 5,00,000 but does not
exceed Rs. 10,00,000
|
20% of the Amount
by which it exceeds Rs. 5,00,000
|
|
Where the Total Income exceeds Rs. 10,00,000
|
30% of the Amount
by which it exceeds Rs. 10,00,000
|
Computation of Age
If an Individual attains the age of 60 years or
80 years during the financial year, his age shall be regarded as 60/80 (as the
case may be), for that whole Financial Year.
- Recommended Read: Income Tax Slab Rates for Super Senior Citizens since
2011-12
After the computation of Total Tax Payable
computed as per the Income Tax Slabs, the Balance Income Tax payable after the
deduction of TDS as
shown in Form 16/Form
16A and reflected in Form 26AS
shall be payable vide Challan No. 280 in the form of Advance Tax in
Installments before the specified Due Dates or else Interest on delay in
payment of Income Tax would be liable to be paid.
B. SLABS FOR BUSINESS
The following Income Tax Slab Rates shall be
applicable for the Assessment Year 2015-16 & Assessment Year 16-17 i.e
Previous Year 2014-15 & Previous Year 15-16 . Education
Cess @ 2% and SHEC @1% shall be levied on the Income Tax so computed.
1. For Co-operative
Society
|
Income Tax Slabs
|
Income Tax Rates
|
|
Where the Total Income does not exceed Rs. 10,000
|
10% of the Income
|
|
Where the Total Income exceeds Rs. 10,000 but does not
exceed Rs. 20,000
|
20% of the Amount
by which it exceeds Rs. 10,000
|
|
Where the Total Income exceeds Rs. 20,000
|
30% of the Amount
by which it exceeds Rs. 20,000
|
2. For Firms, Local
Authority and Domestic Company
Income Tax Slab Rates wont apply in this case and
Tax @ 30% flat shall be computed on the
Total Income. Surcharge shall not be levied on Income of Firms and Local
Authorities but shall be levied on the Total Income Tax of Domestic Companies @
5% provided that the Total Income of the Domestic Company exceeds Rs. 1 Crore.
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