Income Tax Slabs/Rates for Assessment Year 2013 to 2014

1. Individual resident below 60 years of age or any NRI, HUF, AOP, BOI or AJP

(NRI - Non Resident Individual; HUF - Hindu Undivided Family; AOP - Association of Persons; BOI - Body of Individuals; AJP - Artificial Judicial Person)

Surcharge: Nil
Education Cess: 3% of the Income Tax.

2. Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year

 

Income Slabs	Tax Rates
Where the total income does not exceed Rs. 2,50,000/-.	NIL
Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-	10% of the amount by which the total income exceeds Rs. 2,50,000/-.
Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-	Rs. 25,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
Where the total income exceeds Rs. 10,00,000/-	Rs. 125,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Surcharge: Nil
Education Cess: 3% of the Income Tax.

3. Individual resident who is of the age of 80 years or more at any time during the previous year

Income Slabs	Tax Rates
Where the total income does not exceed Rs. 5,00,000/-.	NIL
Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-	20% of the amount by which the total income exceeds Rs. 5,00,000/-.
Where the total income exceeds Rs. 10,00,000/-	Rs. 100,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

"A tax rebate of Rs 2,000 from tax calculated will be available for people having an annual income upto Rs 5 lakh.   However, this benefit of Rs2,000 tax credit will not be available if you cross the income range of Rs 5 lakh.  Thus we can say that tax payable in 10% slab will be maximum Rs28,000 (taking into account Rs 2000 tax credit), but for people who fall in income range of Rs5 lakh and above, the tax will be Rs30,000 + 20% tax on income above Rs 5 lakh"

Deductions from Taxable Income (Section 80C)

A new section 80C was introduced (replacing section 88) from the financial year 2005-06.  Under this Section, a deduction of up-to Rs.1,00,000/- is allowed from Taxable Income in respect of the investments made in some specified schemes.   The schemes are  similar as were available in Section 88 earlier.  Now there are no sectoral caps and individuals can save in any of the schemes up to Rs.1,00,000/- (now even in PPF it is allowed up-to Rs. 1 lac as against only Rs.70,000/- up-to November, 2011).  The tax payers can plan their investments / savings so as to achieve their financial goals.