Superprofs

Home » » Income Tax Rates For A.Y 2014-15

Income Tax Rates For A.Y 2014-15


4 comments:

  1. what is tax credit??????

    ReplyDelete
  2. Budget 2013 (P.y 13-14 & A.y 14-15)
    Persons whose income is upto Rs 5
    lakhs will get a tax credit of Rs 2000.
    They will get a rebate of Rs 2000 under
    newly inserted section 87A in Income
    Tax Act.
    As per new section 87A,
    “An assessee, being an individual
    resident
    in India, whose total income does not
    exceed five hundred thousand rupees,
    shall be entitled to a deduction, from
    the
    amount of income-tax (as computed
    before allowing the deductions under
    this
    Chapter) on his / her total income with
    which he/she is chargeable for any
    assessment year, of an amount equal
    to
    hundred per cent of such income-tax
    or
    an amount of two thousand rupees,
    whichever is less.”
    Myth / Wrong understanding
    Many people think that the exemption
    limit is increased from Rs 2 lakh to Rs
    2.2
    lakh.
    Some think that you need to claim
    refund
    of Rs 2000 after you file the return.
    But above understanding is NOT
    Correct.
    Correct Understanding : Taxpayers in
    Rs
    2-5 lakhs slab will get a rebate of Rs
    2000
    under section 87A and will claim this
    rebate while filing the returns & will
    reduce their tax liability.
    Whether the basic exemption limit
    has been raised from Rs 2 lakhs to Rs
    2.20 lakhs ?
    No. The existing slabs and rates have
    been kept unchanged.
    Tax on income from 2 lakh to 5 lakh is
    at
    10%,
    up to Rs 10 lakh at 20% and
    above 10 lakh at 30%.
    Only taxpayers in Rs 2-5 lakhs slab will
    get a rebate of Rs 2000 under section
    87A
    From when this new rebate is
    available?
    This new section (87A) has been
    inserted
    w.e.f 01-April-2014 and will be
    applicable
    for Assessment year 2014-2015 &
    onwards.
    For the income earned in 2013-2014,
    you
    will get this rebate.
    If my tax due is less than Rs 2000,
    before claiming this rebate, will I get
    a refund ?
    No. the rebate is restricted to amount
    of
    tax payable upto maximum of Rs 2000.
    So
    if your Income is Rs 2,10,000 after all
    deductions and your tax liability is Rs
    1000, you will get rebate of whole Rs
    1000 under new section 87A and no
    tax
    will be payable.
    If my salary package CTC is Rs 6 lakhs,
    can I claim this rebate ?
    May be. It will depends on the “Total
    Income” under Income Tax Act. Total
    Income is calculated after claiming all
    deductions (80C, 80D etc) from the
    Gross
    total taxable income. So if your Net
    Taxable income is below Rs 5 lakhs,
    you
    can claim rebate of Rs 2000 under
    section
    87A of Income Tax Act.
    Whether this rebate is also available
    to Non resident?
    No , Rebate under section 87A is not
    available to non resident persons
    (NRI).
    AUTHOR VIEWS
    Why finance minister has introduced
    this tax credit rather than increasing
    the exemption limit to Rs 2.2 lakhs ?
    It would have same effect.
    Valid question. There may be couple of
    reasons for this, If Chidambaram had
    raised the exemption limit to Rs 2.2
    lakhs,
    1) then Senior citizen would not have
    got
    benefit as exemption limit for them is
    already 2.5 lakhs. But now Senior
    citizen
    can also claim rebate under section
    87A.
    2) those who would be in the Rs 2-2.2
    lakh income bracket will fall out of the
    return filing net and government don’t
    wants this.

    ReplyDelete
  3. What is Rs. 30000+20% of the amount?????

    ReplyDelete

Superprofs

Flipkart

ShareThis

Recommend us on Google!

Amazon Festive Deals

Share

Subscribe via email

Enter your email address:

Delivered by FeedBurner