Below are presented the Income Tax slabs of the financial year 2014-2015 and Assessment Year of 2014-2015. A comprehensive comparison with the previous year’s income tax salary slabs could not be drawn here as the government did not make any changes in the income tax rates for the super senior, senior, female and other individual tax payers in the latest budget. Let us learn more about them in detail:

Individual residents who are more than or equal to 80 years of age during last year:

Income Slabs Income Tax Rate
When total income is more than INR 1000000 INR 10000 plus 30 per cent of the amount by which the total income exceeded INR 1000000
When the total income is more than INR 500000 but not more than INR 1000000 20 per cent of the amount by which the total income exceeded INR 500000
When total earnings do not exceed INR 500000 NIL

Individual residents who are more than 60 years but less than 80 years of age during last year:

Income Slabs Income Tax Rate
When total income is more than INR 1000000 INR 125000 plus 30 per cent of the amount by which the total income exceeded INR 1000000
When the total income is more than INR 500000 but not more than INR 1000000 INR 25000 plus 20 per cent of the amount by which the total income exceeded INR 500000
When the total income is more than INR 250000 but not more than INR 500000 10 per cent of (total income- INR 250000)
When total earnings do not exceed INR 250000 NIL

Income tax slabs for resident women below 60 years of age

Income Slabs Income Tax Rate
When total income is more than INR 1000000 INR 130000 plus 30 per cent of the amount by which the total income exceeded INR 1000000
When the total income is more than INR 500000 but not more than INR 1000000 INR 30000 plus 20 per cent of the amount by which the total income exceeded INR 500000
When the total income is more than INR 200000 but not more than INR 500000 10 per cent of the amount by which the total income exceeded INR 200000
When total earnings do not exceed INR 200000 NIL

Income tax slabs for Co operative society for Assessment year 2014-2015

Income Slabs Income Tax Rate
When total income is more than INR 20000 INR 3000 plus 30 per cent of the amount by which the total income exceeded INR 20000
When the total income is more than INR 10000 but not more than INR 20000 INR 1000 plus 20 per cent of the amount by which the total income exceeded INR 10000
When total earnings do not exceed INR 10000 10 per cent of the income

Other figures

  • Education Cess stands at 3 percent
  • In case of the foreign companies that pay up higher corporate taxes, the surcharge had been increased to 5 per cent from 2 per cent if the taxable income is more than INR 10 crores
  • In case of the domestic companies the surcharge had been increased to 10 per cent from 5 per cent if the taxable income is more than INR 10 crores

*Salaries are subject to change with time and may vary with company policies, general economic scenario and other factors mentioned above

What is meant by Tax on Salary in India?

Tax on salary in India is a levy governed by the Indian Income Tax Act of 1961. A certain amount of money is to be paid to the Government of India if the concerned person is an Indian citizen has an income.
Two aspects of fixing a tax on the salaries of Indian citizens are:

  • To contribute to the development of the public services and issues contributing to the treasury of the government.
  • To curb the ever-growing inequality of people through different income levels.

Under Section 17 of Income Tax Act, the very term of salary incorporates:

  • Wages
  • Pensions or Annuities
  • Gratuities
  • Advance of Salary
  • Additional commission
  • Additional perquisites or profits
  • Encashment of Leave
  • Dearness Allowance
  • Conveyance Allowance
  • Annual Bonus

Chargeable parts of the salary are:

  • Leave Encashment – It is the amount of salary that is received by the employee during his time of leave.
  • Allowances – Amount of money received by the employee from the employer in addition to the salary are called allowances. Under Section 15 of Income Tax Act, 1961, allowances are taxable excluding some cases which are open to deductions and exemptions.

Under the Income tax law of India, allowances are of the following types:

  1. House Rent Allowance – It is a taxable amount, but exemptions are allowed for
    • Actual house rent paid by the employee
    • Rent paid in the form of accommodation over a certain percentage (10% mostly) of the salary
  2. Entertainment Allowance – Although this amount can be used by the employee for any purpose, it is also a taxable income but there are certain cases in which the employee can enjoy a tax deduction.

Tax Slabs, Types of Taxes in India:

Standard Deductions

It is the general percentage of tax that will be payable by the employee depending on the slabs of Income implemented by the Income Tax Act, 1961.
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