No Tax on Income of Rs 2.5 Lakh: Budget 2014-15

As you all know that taxes are major source of revenue for the Government. The taxes like direct taxes and indirect taxes are sources. The income-tax, wealth-tax, expenditure-tax comes under direct taxes. The excise duty, customs duty, service tax etc comes under indirect taxes.

So, income tax play a significance role for the revenue of Government. As the income tax is shared between the Union and the State Governments. But the surcharge is always be part of Union because its main purpose exclusively.

There are good days ahead for common people in India because of increasing tax exemption limit in Budget 2014-15. Government has increased the limit of income tax emption limit to 2.5 lakh from 2 lakh for the persons who are below 60 years of age.

Government has also increased the limit of deduction u/s 80C to Rs.1.5 lakh from 1 lakh. The PPF investment limit is also increased by 50000. Now PPF investment limit increased to Rs. 1.50 Lakh from 1 Lakh. There are lots of benefits for the persons who  would like to save more in future. There are also good news for the person who wants to get load for home. As the limit of tax deduction for home loan increased to Rs. 2 lakh from 1.5 lakh.  So the tax payer can save upto 40,000 with these tax reliefs.  The tax limit increased to Rs.3 lakh from 2.5 lakh for senior citizens. The eduction cess & surcharge will be remain the same as 3%.

Income Tax Slab (After Budget 2014-15)

income tax slab after budget 2014-15

Income Tax Rate for Individual (Men & Women) Below 60 Years of Age (After Budget 2014-15)

  • Income 2.5 Lakh – NIL
  • 2.5 Lakh to 5 Lakh – 10%
  • 5 Lakh to 10 Lakh – 20%
  • Above Rs. 10 Lakh – 30%

Income Tax Rate for Individual Above 60 Years of Age (After Budget 2014-15)

  • Income 3 Lakh – NIL
  • 3 Lakh to 5 Lakh – 10%
  • 5 Lakh to 10 Lakh – 20%
  • Above Rs. 10 Lakh – 30%

Income Tax Rate for Individual Above 80 Years of Age (After Budget 2014-15)

  • Income 5 Lakh – NIL
  • 5 Lakh to 10 Lakh – 20% 
  • Above Rs. 10 Lakh – 30%

See also: Present Income Tax Slab for A.Y.2014-15Save Tax in 2014-15 by Investing Efficiently

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  1. Very good. .. tips in short

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