Income Tax Rates for Assessment Year 2014-2015 – Financial year ending 31st March 2014

The basic exemption limit of a person who is getting salary and other individual for the assessment year (AY) 2014-2015 is Rs 2, 00,000. There is no change in the basic exemption limit for a resident woman. A higher exemption limit has been provided for senior citizen or super senior citizen.

Basic exemption limit is the limit up to which a tax payer is not required to pay any income tax for the assessment year (AY) 2014-2015. If your income exceeds this basic exemption limit for the assessment year (AY) then you are liable to pay tax at the applicable rate of the assessment year (AY) related to the previous year in which such incomes are generated. The tax rate for the assessment year (AY) 2014-2015 are provided in a tabular form below. Incomes generated for the financial year 2013-2014 (i.e. from 1.4.2013 to 31.3.2014) will be taxed based on these income tax rates in assessment year 2014-2015.

Senior citizen is a resident individual who is at least 60 years at any time during the financial or previous year but less than 80 years on the last day of financial or previous year. So for the purpose of income tax calculation for assessment year (AY) 2014-2015 a resident individual born on or after 1st April, 1934 but on or before 31st March, 1954 is a senior citizen.

Income tax rate for the assessment year 2014-2015A super senior citizen is a resident individual who is at least 80 years of age at any time during the previous year. For the assessment year (AY) 2014-2015, a resident individual born on or before 1st April, 1934 will be treated as super senior citizen.

In case of senior citizen and super senior citizen, the basic income tax exemption limit for the assessment year (AY) 2014-2015 is Rs 2, 50,000 and Rs 5, 00,000 respectively.

For a non-resident individual the basic exemption limit for income tax calculation related to assessment year (AY) 2014-2015 is Rs 2, 00,000 irrespective of there age.

Tax Rate for the Assessment Year (AY) 2014-2015 for others including Women

Sr. No Total Income Range for AY 2014-2015 Income Tax Rate for AY 2014-2015 in Percentage
1 Up to Rs 200,000 NILL
2 Rs. 200,000 to 5,00,000 10% of the amount by which the total income exceeds Rs. 2, 00, 00
3 Rs. 5,00,001 to 10,00,000 Rs. 30, 000 + 20% of the amount by which the total income exceeds Rs. 5, 00, 000
4 Above  Rs. 10,00,000 Rs. 1, 30, 000 + 30% of the amount by which the total income exceeds Rs. 10, 00, 000

Tax Rate for the Assessment Year (AY) 2014-2015 for Resident Senior citizen

Sr. No Total Income Range for AY 2014-2015 Income Tax Rate for AY 2014-2015 in Percentage
1 Up to 2, 50, 000 NILL
2 Rs.2,50,001 to Rs.5,00,000 10% of the amount by which the total income exceeds Rs. 2, 50,000
3 Rs. 5,00,001 to Rs. 10,00,000 Rs. 25, 000 + 20% of the amount by which the total income exceeds Rs. 5, 00, 000
4 Above Rs. 10,00,000 Rs. 1, 25, 000 + 30% of the amount by which the total income exceeds Rs. 10, 00, 000

Tax Rate for Assessment Year (AY) 2014-2015 for Resident Super Senior citizen

Sr. No Total Income Range for AY 2014-2015 Income Tax Rate for AY 2014-2015 in Percentage
1 Up to Rs. 5,00,000 NILL
2 Rs. 5,00,000 to Rs. 10,00,000 20% of the amount by which the total income exceeds Rs. 5, 00, 000
3 Above Rs. 10,00,000 Rs. 1, 00, 000 + 30% of the amount by which the total income exceeds Rs. 10, 00, 000

Education Cess

Education cess is charged at the rate of 2% on the tax amount as calculated above

Secondary and Higher education Cess

Secondary and higher education cess is charged at the rate of 1% on the tax amount as calculated above

For the financial year 2013-2014, your employer will be using the above rates and will calculate your TDS that are to be paid for AY 2014-2015.

Tax rate for the Assessment Year 2015-2016 – As introduced in Budget 2014

What is a Assessment Year and a Previous Year in Income Tax

Check if Surcharge is applicable to you in AY 2014-2015

Income tax rebate for AY 2014-2015