Revisions in Tax Slab

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).