For ease of understanding, here’s a segregation of how this figure can be achieved by the taxpayer: –
Section of Income Tax Act, 1961
Amount of Tax benefit
Investments made u/s 80C
1,50,000
24B (Interest on property loan)
2,00,000
Contribution towards National Pension Scheme u/s 80CCD
50,000
Health Insurance Premium u/s 80D
25,000
Transport Allowance @INR 1600 per month u/s 10(14)
19,200
TOTAL
4,44,200
However, a thorough read of the Memorandum to the Budget indicates that there has been no change in the Slab Rates that are applicable for the financial year 2015 – 16. So essentially, this implies that the Slab Rates for the year 2014 – 15 and 2015 – 16 will remain the same.
Income Tax Slab Rates for 2014 -15 and 2015 – 16
The Slab Rates might be the same for the two fiscal years, but they vary with the different categories of taxpayers who can be broadly divided into the following categories:
- A. Individuals and HUF (Hindu Undivided Family)
- 1. Male individuals below 60 years of age and HUF
- 2. Female individuals below 60 years of age
- 3. All senior citizens above 60 years of age
- 4. For super senior citizens above 80 years of age
- B. Businesses
- 1. Co-operative societies
- 2. Firms, local authorities and domestic companies
A. Individuals and HUF
- Educational Cess @ 2%
- SHEC @ 1 %
- No applicable surcharge
- Income Tax Rebate of Rs. 2000 for individuals earning less than 5 Lakh PA
1. Male individuals below 60 years of age and HUF
Income Tax Slabs
Income Tax Rates
Below Rs. 2,50,000
NIL
Rs. 2,50,000 – 5,00,000
10% of the amount exceeding Rs. 2,50,000
Rs. 5,00,000 – 10,00,000
20% of the amount exceeding Rs. 5,00,000
More than Rs. 10,00,000
30% of the amount exceeding Rs. 10,00,000
2. Female individuals below 60 years of age
Income Tax Slabs
Income Tax Rates
Below Rs. 2,50,000
NIL
Rs. 2,50,000 – 5,00,000
10% of the amount exceeding Rs. 2,50,000
Rs. 5,00,000 – 10,00,000
20% of the amount exceeding Rs. 5,00,000
More than Rs. 10,00,000
30% of the amount exceeding Rs. 10,00,000
3. All senior citizens above the age of 60 years
Income Tax Slabs
Income Tax Rates
Below Rs. 3,00,000
NIL
Rs. 3,00,000 – 5,00,000
10% of the amount exceeding Rs. 3,00,000
Rs. 5,00,000 – 10,00,000
20% of the amount exceeding Rs. 5,00,000
More than Rs. 10,00,000
30% of the amount exceeding Rs. 10,00,000
4. All senior citizens above the age of 80 years
Income Tax Slabs
Income Tax Rates
Below 5,00,000
NIL
Rs. 5,00,000 – 10,00,000
20% of the amount exceeding Rs. 5,00,000
More than Rs. 10,00,000
30% of the amount exceeding Rs. 10,00,000
If you are a salaried employee and have income sources apart from your monthly salary, or are a freelancer, then you’ll be liable to pay Advance Tax, the details of which shall reflect in your Tax Credit Statement i.e. Form 26AS. If this tax remains unpaid by the specified due date, one is liable to pay interest on it as well.
B. Slabs for Businesses
1. Co-operative societies
Income Tax Slabs
Income Tax Rates
Below Rs. 10,000
10% of the income
Rs. 10,000 – 20,000
20% of the amount exceeding Rs. 10,000
More than Rs. 20,000
30% of the amount exceeding Rs. 20,000
2. Indigenous firms, local authorities and domestic companies
Income Tax Slab Rates do not apply for such companies. Income tax for firms, local authorities and domestic companies shall be computed at a flat 30% of the total income. Surcharge shall not be levied on the income of firms and local authorities, but in case of domestic companies with a total income exceeding Rs. 1 crore, a surcharge of 5% is applicable on the total income tax.
Income Tax Exemptions and Deductions
Income Tax Section
Gross Annual Salary
Saved Tax
Section 80C
Across all income slabs
Upto Rs. 46,350/-saved on an investment of Rs. 1,50,000/-
Section 80CCC
Across all income slabs
Upto Rs.30,900/-saved on an Investment of Rs.1,50,000/-
Section 80D
Across all income slabs
Upto Rs. 10,815/-saved on investment of Rs.35,000/- (Inclusive of Rs. 20,000/- towards health insurance of parents who are senior citizens)
Section 10(10)D
Across all income slabs
Under Sec. 10(10D), the benefits received by you are completely tax-free, subject to conditions specified.
Do note that the tax benefits mentioned above are subject to changes in the tax laws. It is always ideal to consult a tax consultant for an exact calculation of your tax liabilities and deductions and / or exemptions before filing your taxes. Alternatively, you can always do it the easier way by calculating it online at PolicyBazaar.