Re­vi­sions in Tax Slab

Consumer Voice - - BFSI Guide -

Fi­nan­cial year 2014–15 saw an amend­ment in the tax slab. Although there was no change in the tax rates, the tax-ex­emp­tion limit was in­creased from Rs 200,000 an­nu­ally to Rs 250,000. This means that in­di­vid­u­als earn­ing less than Rs 250,000 need not pay any tax on their in­come. Hence, they will now be sav­ing about Rs 5,000 that oth­er­wise could have been go­ing to­wards tax. Tax Slabs for Fi­nan­cial Year 2014–15 (As­sess­ment Year 2015–16)

Gross To­tal In­come

Up to Rs 250,000

Rs 250,001–Rs 500,000

Rs 500,001–Rs 1,000,000

Above Rs 1,000,000

Tax Rate

0

10%

20%

30%

The sec­ond im­por­tant amend­ment is un­der Sec­tion 80 (C) un­der the In­come Tax Act. Ear­lier the max­i­mum qual­i­fy­ing in­vest­ments for de­duc­tion from to­tal in­come was Rs 100,000 (2013–14). This has been raised to Rs 150,000 for the cur­rent year, thereby en­abling the salaried class to save tax on in­come by Rs 5,000 (min­i­mum) if one can man­age to bring in ad­di­tional sav­ings of up to Rs 50,000 in ap­proved in­stru­ments el­i­gi­ble un­der 80 (C).

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