The following INCOME TAX RATES ARE applicable for the Financial Year ending March 31, 2014(Financial Year 2013-14)-Assessment Year 2014-15):
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Income Range
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General (non-senior citizens) Category
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Women (Below 60 years of age)
(This category is abolished from this year and is thus is same as that of General Category
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Senior Citizens (Men and Women above 60 years of age), but below 80 years
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Upto Rs. 2,00,000
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Nil
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Nil
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Nil
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Rs. 2,00,001 to Rs. 2,50,000
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10% *
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10% *
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Nil
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Rs. 2,50,001 to Rs. 5,00,000
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10% *
|
10% *
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10% *
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Rs. 5,00,001 to Rs. 10,00,000
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20%
|
20%
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20%
|
|
Above Rs. 10,00,000
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30% **
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30% **
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30% **
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Deductions from Taxable income
·         Section 80C- Under this Section, a deduction of upto Rs.1,00,000/- is allowed from Taxable Income in respect of the investments made in some specified schemes
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Saving Scheme
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Sec. under which Tax Benefit available
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National Saving Certificates – ( NSC scheme )
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Section 80C
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·
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Life Insurance Policies
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Section 80C
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Unit Linked Insurance Plan (ULIP)
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Section 80C
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Infrastructure Bonds
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Section 80C
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Contribution to EPF / GPF / Voluntary PF
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Section 80C
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Insurance Policies
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Section 80C
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ULIPS
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Section 80C
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Public Provident Fund (PPF)
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Section 80C
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NPS
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Section 80C
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Tuition Fees including admission fees or college fees paid for full time education of any two children of the assessee.
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Section 80C
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Repayment of Housing Loan (Principal)
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Section 80C
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Bank Fixed Deposits – 5 Years
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Section 80C
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Senior Citizens Savings Scheme 2004 (from financial year 2007-08)
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Section 80C
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Post Office Time Deposit Account (from financial 2007-08)
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Section 80C
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Equity Linked Saving Scheme (ELSS)
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Section 80C
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·         Deduction under Section 80 CCC- Under this section, the contributions by individuals towards “Pension” schemes of LIC or any othr Insurance company, is allowed as deduction of Rs.10,000/-
·         Deductions under section 80D- Basic Deduction under Section 80D,   Mediclaim premium paid for Self, Spouse or dependant children is allowed upto Rs 15,000. In case any of the persons specified above is a senior citizen (i.e. 65 years or more as of end of the year) and Mediclaim insurance premium is also paid for such senior citizen, deduction amount is enhanced to Rs. 20,000.
·         Deduction Under Section 80E- Under this section, deduction is available for payment of interest on a loan taken for higher education from any financial institution or an approved charitable institution
·         Deduction under section 24 B- Under this section, interest on borrowed capital for the purpose of house purchase or construction is deductible from taxable income upto Rs.1,50,000/- is deductible from income
TAX FREE INCOMES :
Some of the incomes are completely exempted from income tax and that too without any upper limit.  The following incomes which are tax free :-
(a) Interest on EPF / GPF / PPF
(b) Interest on GOI Tax Free Bonds / Tax Free Bonds issued with specific stipulation to this effect
(c) Dividends on Shares and Mutual Funds. Dividend income from companies / Equity Oriented Mutual funds is completely exempt in the hands of investors. Dividend is also tax free in the hands of investors in case of debt-oriented Mutual Fund schemes.
(d) Capital receipts from Life Insurance policies i.e. sums received either on death of the insured or on maturity of Life insurance plans.
e) Interest on Saving Bank accounts in banks upto Rs10,000/- per year (from FY 2012-13)
 (f) Long term capital gains on sale of shares and equity mutual funds after 01/10/2004, if security transaction is paid / imposed on such transactions.
For any queries, you can contact Prof. Vipin Saboo at 9820779873
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