Income Tax Rates for year 2015-16

Tax slabs have not changed since financial year FY 2014-15 (assessment year AY 2015-16). Income tax slab rates are same for these 3 financial years – FY 2014-15, FY 2015-16 and FY 2016-17 and Tax Slabs are same for both Men and Women.

For Men and Women Below 60 Years Of Age

Income Tax Slab	Income Tax Rate
Income upto Rs. 2,50,000	Nil
Income between Rs. 2,50,001 – Rs. 500,000	10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000

Education cess @ 3 % ( on total tax computed ) will be added to derive the Final Income Tax that you ultimately pay.

 

For Senior Citizens (Age 60 years or more but less than 80 years)

Income Tax Slab	Income Tax Rate
Income upto Rs. 3,00,000	Nil
Income between Rs. 3,00,001 – Rs. 500,000	10% of Income exceeding Rs. 3,00,000
Income between Rs. 500,001 – Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000

Education cess @ 3 % ( on total tax computed ) will be added to derive the Final Income Tax that you ultimately pay.

For Senior Citizens (Age 80 years or more)

Income Tax Slab	Income Tax Rate
Income upto Rs. 5,00,000	Nil
Income between Rs. 500,001 – Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000

Education cess @ 3 % ( on total tax computed ) will be added to derive the Final Income Tax that you ultimately pay.

Note : There are no more separate income tax slabs for men and women. The slabs mentioned here are equal to both men and women. 

Income Tax Exemption Limit – 2014-15

 I. Individuals (Below 60years)
 

• Up to Rs 2.5 lakh  :  No tax
• From Rs 2.5 lakh to 5 lakh : 10%
• From Rs 5 lakh to 10 lakh : 20%
• Above Rs 10 lakh : 30%
• Education Cess: 3% of the Income-tax. 

Note : There are no more separate income tax slabs for men and women. The slabs mentioned here are equal to both men and women. 

II. Senior Citizens ( Above 60 years but below 80 years)
 

• Up to Rs 3 lakh : No tax
• From Rs 3 lakh to 5 lakh : 10% 
• From Rs 5 lakh to 10 lakh : 20%
• Above Rs 10 lakh : 30%
• Education Cess: 3% of the Income-tax.

  .

III.   Very Seniors Citizens ( Above 80 years) 

• Up to Rs 5 lakh: No tax
• From Rs 5 lakh to 10 lakh: 20%
• Above Rs 10 lakh: 30%
• Education Cess: 3% of the Income-tax.

New Tax exemption limit as per Union Budget 2014-15

  

• I-T exemption limit up from 2L to 2.5L  for all individual tax payer who are below the age of 60 years providing a relief of Rs. 5,150/- (The proposal, according to an estimate, is likely to benefit about 2 crore tax payers) 

• Exemption limit for those aged above 60 but below 80 also increased from 2.5 lakh to 3 lakh 

• investment limit under 80 C has been raised to Rs. 1.5 lakh from the existing Rs. 1 lakh to encourage savings 

• Investment in Public Provident Fund up to Rs. 1.5 lakh would now be exempt from tax. This was earlier pegged at Rs. 1 lakh 

• tax deduction limit on account of interest of housing loan in case of self occupied property to Rs. 2 lakh from Rs. 1.5 lakh. 

• 3% education cess to continue 

• 10% surcharge continues for individuals with income over 1 crore 

Union Budget 2014-15

Highlights of Union Budget 2014

 

• Slowdown in India broadly reflects the trend in many economies. Fortunately, there are green shoots of recovery seen in the global economy
• People have decided for a change
• Those below poverty lines anxious to free themselves
• Look forward to lower levels of inflation
• Country in no mood to suffer unemployment, lack of infrastructure
• Broad policy indicator of the direction we want to take
• Poor who suffer the most
• We have to ensure anti-poverty programmes are well targeted
• Mandate of sab ka saath, sab ka vikaas will be followed
• Will leave no stone unturned in creating a vibrant India
• Need to revive growth in manufacturing and infrastructure sector
• Can’t spend beyond our means, need fiscal prudence
• Conscious choice has to be made by all of us…should we allow our future to suffer because if our indecisiveness
• Need to revive growth in manufacturing and infrastructure
• The task is simple if we accept we cannot spend beyond our means
• We need to introduce fiscal prudence
• We have large subsidy burden
• Target of 4.1% fiscal deficit is daunting (Finance Minister Retains Fiscal Deficit Target at 4.1% of GDP)
• I have accepted this target as challenge
• Tax-to-GDP ratio must be raised
• Will streamline taxation and avoid harassment. This government will not bring any restrospective amendments
• Banking Sector needs to be strengthened
• There is urgent need to generate more resources
• We need to revive growth particularly in manufacturing sector and infrastructure
• Anti-poverty programmes will be targeted well
• We wish to achieve 7 to 8 per cent growth in next 3-4 years
• Will leave no stone unturned to create a vibrant India
• Will usher in policy regime that will usher in higher growth, low inflation
• Slow decision making has resulted in loss of opportunity
• Pradhan Mantri Krishi Sichai Yojana – 1000 crores set aside
• Swach Bharat Abhiyaan – sanitation is of prime importance
• Van Bandhu Kalyan Yojana launched with initial allocation of 100 crores for welfare of tribals
• Rs. 500 crore for Deen Dayal Upadhyay rural electrification programme
• Sardar Patel statue work will be completed in Gujarat

 

Women Safety:

• Outlay of Rs. 50 crores for a pilot scheme on road safety
• Another 150 crores to be spent by MHA on safety on women in larger cities ( 200 Cr For PM Modi’s Sardar Patel Statue vs 150 cr For Women’s Safety)
• ‘Beti Bachao, Beti Padhao Yojana’ – 100 crores
• 8000 crores for national housing banking programme – for rural housing (Arun Jaitley Seeks to Revamp UPA’s Rural Employment Scheme)

Education:

• All 6 additional AIIMS have become operational 
• Plan to set up 4 more AIIMS in Andhra Pradesh, West Bengal, Vidharbha and Purvanchal. Rs. 500 crore allocated
• Pandit Madan Mohan Malviya New Teacher’s Training Programme launched. 5 more IITs and IIMs  to be set up – Rs. 500 crores allocated
• FTII Pune, SRFTI Kolkata will be accorded the status of institute of national importance
• 100 Crores for modernising Madrasas

Agriculture:

• Urgent need for investment in agro-technology and development ( Rs. 1000 Crore Set Aside to Improve Irrigation Facilities)
• 100-crore Agri-Infrastructure fund
• Horticulture University in Telangana and Haryana

 

Infrastructure:

• 50-crores for indigenous cattle breeding. 8 lakh crores set aside for Agriculture credit
• Allocation of 5000 crores to address the need to scientific warehousing
• Long-term rural credit fund to be set up in NABARD with initial support of 5000 crores
• Kisan TV will be launched in the current year (Kisan TV to Provide Real Time Information on Agriculture)
• The government is committed to provide housing for all by 2022
• All the Government departments and ministries will be integrated through E-platform by 31 December this year
• MSME sector – 10,000 crore rupee fund by way of attracting further private equity
• Entrepreneurship friendly bankruptcy laws to facilitate easy exit
• 200 crores for new textile centres in Bareily, Kutch, Surat, Mysore and Bhagalpur
• Hastkala Academy in Delhi – 30 crores set aside
• Pashmina production centre in Jammu and Kashmir

Investments in roads, airports:

• 16 new port projects to be awarded this year
• Over 11 thousand crores for Tuticorin, Kandla and other ports
• Schemes for development of airports in tier 1 and 2 cities via AAI and
• Investment in NHAI and state highways to the tune of 37,887 cores – including 3000 crore for North East
• Allahabad-to-Haldia Ganga waterway project announced
• Proposals to boost investment in mining sector 

Markets and Banking:

• Proposals for Capital Markets – Introduction of uniform KYC norms
• One single operating DMAT account
• Modern monetary policy framework; liberalize ADR, GDR regime
• Revamp Indian Depository Receipts (Budget 2014: FDI Limit in Defence, Insurance Hiked to 49%)
• Time bound programme to provide banking services to all households
• Two bank accounts in each household to be opened which would also be eligible for credit
• Pending Insurance Law Amendment Bill to be taken up for consideration

Defence and Water fronts:

• 2,29,000 crores allocated for Defence; One-Rank-One-Pay Adopted
• War Memorial to be constructed at Princess’ Park and supplemented by a War Museum – 100 crores allocated
• Wage ceiling for EPFO schemes increased to Rs. 15,000 from existing Rs. 6,500 per month.
• Construction of a national police memorial
• Rs. 100 crore for development of Technology Development Fund
• Additional 5000 crore will be set aside for defence outlay over and above amount provided under interim budge
• 100 crores for ghat development & beautification of river fronts
• NRI Fund for ‘Clean Ganga’ Programme

Sports:

• 200 crores for upgrading indoor and outdoor facilities in Jammu and Kashmir
• Rs. 100 crores allocated for Sports University in Manipur
• 100 crores for training sportsmen and women for upcoming Commonwealth and Asian Games

Education, Information Technology, tax and investments:

• IT Exemption limit raised by 50,000
• Education cess continues as 3 %
• Direct taxes: exemptions limit raised by 50,000 to 2.50 lakh 
• Under 80C – 1 lakh to 1.5 lakhs to encourage savings
• Investment allowance at 15% for 3 yrs to manufacturing company which invest more than Rs. 25 crore in plant and machinery
• No tax for those earning below Rs. 2.5lakh per annum
• Those earning above Rs. 2.5 lakh per annum to save Rs. 5150 per year
• 10 year tax holiday for power companies who start production and distribution on March 31, 2017
• Small colour TVs to be cheaper
• Income Tax Department is expected to function not only for  enforcement but also as a facilitator
• New Aykar Sewa Kendras to be opened

Customs and excise:

• Colour picture tubes exempted from basic customs duty – basic customs duty on LCD, LED panels below 19 inches reduced to NIL
• Excise duty concessions extended already. More proposals to cut excise on food processing and footwear
• Cigarettes, chewing tobacco, Gutkha and Pan masala and aerated water containing added sugar to become more expensive
• Excise duty on cetrain solar equipment exempted
• Specific excise duty on cigarettes raised in the range to 11 to 72 per cent
• Additional excise duty of 5 per cent levived on aerated waters with added sugar.
• Clean energy cess increased from Rs. 50 per tonne to Rs. 100 per tonne.
• Government announces pruning of negative and exemption list of service tax to widen tax base.
• Government to earn Rs. 7,525 crore more from changes in indirect taxes.
• Government exempts loading/unloading and transportation of cotton from service tax
• Indian Custom Single Window Project to be taken up for facilitating trade

 

• Government announces Arun Prabha channel for northeastern region; will be 24/7 channel
• Rs 1000 crore provided for rail connectivity in northeastern region
• Government announces  Rs 150 crore for communication needs of Andaman and Nicobar islands
• Programme for displaced Kashmiri migrants with Rs 500 crore to be started.
• Rs 100 crore set aside for project to link rivers.
• Government announces Rs 100 crore for development of Archaeological sites. Gaya to be developed as world class tourism spot.
• Rs 5000 crore set aside for defence outlay over and above amount provided under interim budget.
• National Police Memorial to be set up. Rs 50 crore set aside for this purpose.
• Rs 100 crore set aside for development of Technology Development Fund.
• Rs 100 crore War Memorial at Princess Park, India Gate. 
• Policy of One Rank One Pension to be adopted for defence personnel.
• RBI will create framework for licenses of small banks.
• Government aims to provide all households with banking facilities to empower the weaker sections; there should be atleast 2 bank accounts in each household.
• Urgent need to converge current Indian standard with international accounting standards: Jaitley
• Rs 37, 800 crore allotted for National Highways.
• Revision of rate of royalty on minerals to be taken up on request from the states.
• In order to complete gas grid, 15000 km of additional pipeline to be developed through PPP mode.
• ​New and renewable energy deserves high priority; ultra modern power projects to be taken up in Rajasthan, Tamil Nadu, Ladakh with Rs 500 crore.
• Rs 4200 crore set aside for Jal Marg Vikas project on river Ganga connecting Allahabad to Haldia , over 1620 km.
• Scheme for development of new airports at tier II and III cities through PPP mode
• Rs 200 crore set aside for 6 more textile clusters in Rae Bareily, Lucknow, Surat, Bhagalpur.
• Rs 50 crore set aside for Pashmina Production program in J&K.
• MSMEs are the backbone of the economy; to be revived through a Committee to examine and report in three months.
• 6 more textile clusters to be set up.
• Industrial Smart Cities to come up at 7 cities.
• All govt departments and ministries to be integrated through E-platform by 31 December this year.
• Rs 100 crore set aside for Kisan Television to provide real time information on various farming and agriculture issues.
• National Industrial Corridor to be set up. Rs 1000 crore set aside for this.
• Rs 5000 crore short time rural credit refinance fund for 2014-15.
• Rs 50 core set aside for indigenous cattle breed and blue revolution for inland fisheries.
• Propose to provide finance to 5 lakh landless farmers through NABARD.
• Govt will initiate scheme to provide a soil health card; Rs 100 crore set aside. Rs 56 crore for soil testing labs across the country.
• Agriculture University in Andhra Pradesh and Rajasthan, and Horticulture University in Haryana, Telangana; Rs. 200 cr set aside by the government.
• Slum development to be included in Corporate Social Responsibility activities.
• Govt announces Rs 100 crore for modernization of madrassas.
• Govt announces development of Metro rails in PPP mode; Rs 100 crore set aside for metro scheme in Ahmedabad and Lucknow.
• Rs 100 crore set aside for Community Radio Centres; 600 new and existing ones will be supported.
• National Rural Internet and Technology Mission; Rs 500 crore set aside
• Govt proposes to set up Center of Excellence in MP named after Lok Nayak Jai Prakash Narayan.
• 5 more IITs and 5 IIMs to be set up .
• The premier engineering  IIT colleges will be added to Jammu, Chhattisgarh, Goa, Andhra Pradesh and Kerala
• Top-ranked business schools or IIMs will be set up in Himachal Pradesh, Punjab, Bihar, Odisha and Maharashtra
• Propose to set up four more AIIMS; Rs. 500 crore set aside for this. Six new AIIMS started recently have become functional. Four new AIIMS will be set up in Andhra Pradesh, West Bengal, Vidarbha and Purvanchal
• Govt proposes National Housing Banking programme; sets aside Rs 8000 crore for this program.
• Pradhan Mantri Gram Sadak Yojana has a massive impact on rural development; Govt sets aside Rs 14,389 crore for this scheme.
• Crisis Management Center for women at Delhi; money to be provided from Nirbhaya fund.
• Govt announces Beti Padhao, Beti Badhao Yojana; sets aside Rs 100 crore for this.
• Safety of women of prime importance.
• EPFO will launch a unified account scheme for portability of Provident Fund accounts.
• Schemes for disabled persons in the country. 15 new Brail presses to be established and revival of 10 existing.
• Rs 50,548 crore proposed for Schedule Caste development.
• Govt committed to providing 24/7 power supply to all homes. Deen Dayal Upadhyay Gram Jyoti Yojna for electricity supply to rural areas.
• Pradhan Mantri Krishi Sichayin Yojana to be started for irrigation.
• We will examine proposal to give additional autonomy to banks and make them more responsible: Jaitley
• E-visas to be introduced at nine airports in India in phased manner.
• FDI in insurance to be increased to 49%
• FM announces FDI in defence up from 26 to 49 % with Indian management and control
• Transfer pricing is major area for litigation; proposes changes in transfer pricing regulation: Jaitley
•  I propose to strengthen authority for advance ruling in tax: Jaitley
•  Aim to achieve 7-8 per cent economic growth rate in next 3-4 years.We wish to provide an investment friendly taxation system: Jaitley
• This govt will not ordinarily change policies retrospectively which creates a fresh liability.
• GST will streamline tax administration and result in higher tax collection for center and states.
• A new urea policy would be formulated.
• Considering that we had two years of low GDP growth, a large subsidy burden, target of 4.1% fiscal burden is daunting: Jaitley
• We must address the problem of black money: Jaitley
•  Iraq crisis leading behind an impact. Inflation has remained at elevated level: Jaitley
• We have taken up the challenge in the right ernest; will create a vibrant and strong India: Jaitley.

• Rs 100 crore for training of sportspersons for upcoming Asian Games.
• Tax proposals on indirect tax front would yield Rs 7,525 crore.
• ​Indian Custom Single Window Project to be taken up for facilitating trade.
• Clean energy cess increased from Rs 50/ tonne to Rs 100/tonne.
• Additional 5% excise tax to be levied on aerated drinks with added sugar (cold drinks). Tobacco products also to get costly as excise duty hiked to 72%
• Government announces reduction in excise duty for specified food package industry from 10% to 6%.
• Excise duty on footwear reduced from 12% to 6%
• Government announces measures to encourage manufacture of LCD/LED panels of TVs. 

 

• Housing loan rebate to raised from Rs 1.5 lakh to Rs 2 lakh.
• Net effect of direct tax proposals is revenue loss of Rs 22,200 crore.
• Government proposes to increase investment limit under Section 80C from Rs 1 lakh to Rs 1.5 lakh.
• Tax exemption limit for small and marginal, and senior tax payers changed from Rs 2.0 to Rs 2.5 lakh. For senior citizens, no tax for income up to Rs 3 lakh per annum. 
• No changes in tax rate. 
• PPF limit to be raised to Rs 1.5 lakh