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Tax Facts - Income Tax Rates

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    Capital gains

    Income tax rates usually change annually. Any adjustments are announced by the Ministry of Finance, Government of India.

    Following is the table indicating the impact of changes in income tax provisions proposed by Finance Minister Arun Jaitley in the Budget 2014-15. Tax exemption limit has been raised to Rs 2.5 lakh from Rs 2 lakh.

    Income tax rates determine the tax that will be applied to your income. In India, there are different income tax rates for men, women and senior citizens. The table outlines these.

    Income tax slab (in Rs.) Tax Rate
    Up to Rs 2,50,000 NIL
    Rs 2,50,001 to Rs 5,00,000 10 per cent
    Rs 5,00,001 to Rs 10,00,000 20 per cent
    Above 10,00,000 30 per cent

    India Income tax slabs 2014-2015 for Senior citizens (Aged 60 years but less than 80 years):

    Income tax slab (in Rs.) Tax Rate
    Up to Rs 3,00,000 NIL
    Rs 3,00,001 to Rs 5,00,000 10 per cent
    Rs 5,00,001 to Rs 10,00,000 20 per cent
    Above 10,00,000 30 per cent

    India Income tax slabs 2014-2014 for very senior citizens (Aged 80 and above):

    Income tax slab (in Rs.) Tax Rate
    0 to Rs 5,00,000 NIL
    Rs 5,00,001 to Rs 10,00,000 20 per cent
    Above 10,00,000 30 per cent

    Others Tax Benefits in this budget:

    • 80C Limit increased from Rs 1 lakhs to Rs 1.5 lakhs
    • Maximum Limit to PPF increased from Rs 1 lakhs to Rs 1.5 lakhs
    • Home loan interest free calculation increased from Rs 1.5 lakhs to Rs 2 lakhs
    • No change in the rate of surcharge either for the corporates or the individuals, HUFs, firms etc.
    • The education cess to continue at 3 percent
    • Deduction limit on account of interest on loan in respect of self-occupied house property raised from Rs 1.5 lakhs to Rs 2 lakhs