Income Tax Slab (Financial Year 2013-14 | Asstt. Year 2014-15)

by Abhinav Gulechha on September 30, 2013

Income Tax Slab is basically the slab according to which the rate at which you need to pay tax on your income is determined. Tax slabs for the forthcoming year are announced in the Union Budget every year in March. 

Let us now look at the income tax slab prescribed by the Finance Bill, 2013. 

Note that these rates will apply to your income earned during the period April 1, 2013 to March 31, 2013 (known as Financial Year 2013-14). Also, in case you are required to pay any advance tax during the year, you will have to pay at these rates. 

Also note that tax rates are applicable on “total income”. Total Income = Gross Total Income – All deductions u/s 80C to 80U 

Income Tax Slab

photo courtesy: insurance5

 

Normal Individual (Male and female both): Age less than 60 years 

Tax rates applicable will be as follows:

Total Income Rate of Tax Surcharge Education cess Secondary and higher education cess
Up to Rs 2,00,000 Nil Nil Nil Nil
Rs.2,00,001 –  Rs 5,00,000 10% of (total income minus Rs. 2,00,000) Nil 2% of income tax 1% of income tax
Rs.5,00,001 –  Rs.10,00,000 Rs. 30,000 + 20% of (total income minus Rs. 5,00,000) Nil 2% of income tax 1% of income tax
Rs.10,00,001 – Rs. 1,00,00,000 Rs. 1,30,000 + 30% of (total income minus Rs. 10,00,000) Nil 2% of income tax 1% of income tax
Above 1,00,00,000 Rs. 28,30,000 + 30% of (total income minus Rs. 1,00,00,000) 10% of income tax 2% of income tax and surcharge 2% of income tax and surcharge

 

Senior Citizen: Age 60 years or more but less than 80 years  

Tax rates applicable will be as follows:

Net income range Income Tax rates Surcharge Education cess Secondary and higher education cess
Up to Rs 2,50,000 Nil Nil Nil Nil
Rs.2,50,000 – Rs5,00,000 10% of (total income minus Rs. 2,50,000) Nil 2% of income tax 1% of income tax
Rs.5,00,000 – Rs10,00,000 Rs. 25,000 + 20% of (total income minus Rs. 5,00,000) Nil 2% of income tax 1% of income tax
1Rs.0,00,000 – Rs 1,00,00,000 Rs. 1,25,000 + 30% of (total income minus Rs. 10,00,000) Nil 2% of income tax 1% of income tax
Above Rs. 1,00,00,000 Rs. 28,25,000 + 30% of (total income minus Rs. 1,00,00,000) 10% of income tax 2% of income tax and surcharge 1% of income tax and surcharge

 

Super Senior Citizen: Age 80 years or more 

Tax rates applicable will be as follows: 

Net income range

Income Tax rates Surcharge Education cess Secondary and higher education cess
Up to Rs 5,00,000 Nil Nil Nil Nil
Rs. 5,00,000 – Rs10,00,000 20% of (total income minus Rs. 5,00,000) Nil 2% of income tax 1% of income tax
Rs.10,00,000 – Rs. 1,00,00,000 Rs. 1,00,000 + 30% of (total income minus Rs. 10,00,000) Nil 2% of income tax 1% of income tax
Above 1,00,00,000 Rs. 28,00,000 + 30% of (total income minus Rs. 1,00,00,000) 10% of income tax 2% of income tax and surcharge

2% of income tax and surcharge

Important note: 

Note that under Section 87A of Income Tax Act, if your total income does not exceed Rs. 5,00,000, you can avail a rebate under section 87A. The amount of rebate is 100 percent of income tax or Rs. 2,000 whichever is less. It is deductible from income tax before calculating education cess. 

So, if your total income is Rs. 5 lacs, the tax payable after taking into account Rs. 2 lac exemption limit will come to Rs. 30,000 plus surcharge. From this, you can claim deduction u/s 87A of Rs. 2,000. On the balance Rs. 28,000, you will have to add 2% education cess and 1% secondary and higher education cess and thus total payable tax will come to Rs. 28,000*103% = Rs. 28,840.

 Hope this post gives you good clarity on the applicable income tax slab and rates for FY 2013-14. Please send us your queries or suggestions if any,

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Abhinav Gulechha

SEBI RIA and Principal Financial Planner at M/s Soham Financial Planners
Abhinav is a SEBI Registered Investment Advisor (RIA) and the Principal Financial Planner at www.sohamfp.com, where he provides fee-only financial planning advice and mentoring to help families plan and organise their financial life and move confidently in direction of their life’s most important goals. By qualification, he is a Certified Financial Planner (CFPCM) and a Chartered Accountant (ACA), and has a 9+ years of industry experience. He regularly writes on his website as well as in reputed journals /industry magazines, and also serves as visiting faculty at a couple of FPSB India’s authorised education providers in Mumbai. He is also a member of The Financial Planners’ Guild, India (FPGI), an association of Practicing Certified Financial Planners.

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