Rates of Income Tax for the year 2013-14 (Assessment Year 2014-15)

RATES OF INCOME-TAX FOR THE YEAR 2013-14 (ASSESSMENT YEAR 2014-15) AS PER FINANCE  ACT, 2013

As per  the Finance Act, 2013, income-tax is required to be deducted under Section 192 of the Act  from income chargeable under the head  “Salaries” for the financial  year 2013-14 (i.e. Assessment Year 2014-15) at the following rates:

2.1  Rates of tax

A.        Normal Rates of tax:

B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more  but less than eighty years at any time during the financial year:

C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

2.2       Surcharge on Income tax:

The amount of income-tax shall be increased by a surcharge @10% of the Income-tax on payments to an individual taxpayer, if the  total income of the individual  exceeds Rs 1 crore during FY 2013-14 (AY 2014-15). However the amount of Surcharge shall not exceed the amount by which the individual’s total income exceeds Rs 1 crore and if surcharge so arrived at, exceeds such amount (assessee’s total income minus one crore) then it will be restricted to the amount of total income minus Rupees one crore.

2.3.1    Education Cess on Income tax:

The amount of income-tax including the surcharge if any,  shall be increased by Education Cess on Income Tax at the rate of two percent of the income-tax.

2.3.2    Secondary and Higher Education Cess on Income-tax:

An  additional  cess  is  chargeable  at  the  rate  of  one  percent  of  income-tax  including  the surcharge if any,  but not including the Education Cess on income tax as in 2.3.1.

Download Income Tax Circular No: 8/2013 dated 10.10.2013 for instructions on Calculation of Income Tax for Salaried Employees

Click here for online GConnect Income Tax Calculator 2013-14 (Assessment Year 2014-15)