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INCOME TAX 2013-14 AY 2014-15

Income Tax Act and Income Tax Calculation for 2013-14 for AY 2014-15


Income Tax Act and Income Tax Calculation for 2013-14 for Employees and Teachers. Income Tax Deduction from Salaries During The Financial Year 2013-14 under Section 192 of the Income Tax, Act.1961. Vide Circular No.08 /2013 F.No. 275/192/2013-IT(B) Dated 10.10.13, Govt of India has released the Guidelines for Calculation of Income Tax for Salaried Employees, Teachers for 2013-14. Reference is invited to Circular No.08/2012 dated 05.10.2012 whereby the rates of deduction of income-tax from the payment of income under the head "Salaries" under Section 192 of the Income-tax Act, 1961(hereinafter ‘the Act’), during the financial year 2012-2013, were intimated. The present Circular contains the rates of deduction of income-tax from the payment of income chargeable under the head "Salaries" during the financial year 2013-2014 and explains certain related provisions of the Act and Income-tax Rules, 1962.

Income Tax Calculation 2013-14 and Income Tax Act for 2013-14


Rates of Income Tax for 2013-14 as per Finance Act 2013.

As per the Finance Act, 2013, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2013-14 (i.e.Assessment Year 2014-15) at the following rates.
Income Tax Normal Slabs below 60 Years Income Tax Rate
i. Where the total income does not exceed Rs. 2,00,000/-. NIL
ii. Where the total income exceeds Rs. 2,00,000/- but does not exceed Rs. 5,00,000/-. 10% of amount by which the total income exceeds Rs. 2,00,000/-.

(Less-Rebate): Tax Credit - 10% of taxable income upto a maximum of Rs. 2000/-.
iii. Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 30,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iv. Where the total income exceeds Rs. 10,00,000/-. Rs. 130,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.


Important Changes made in Income Tax Act from 2013-14 AY 2014-15

  1. Vide Finance Act 2013, an individual is allowed a deduction upto a limit of Rs 1,00,000 being paid as interest on a loan taken from a Financial Institution, sanctioned during the period 01-04-2013 to 31-03-2014 (loan not to exceed Rs 25 lakhs) for acquisition of a residential house whose value does not exceed Rs 40 lakhs.(Section 80EE)
  2. Section 80C (Deduction of premium amount of life Insurance covering the life of persons with disabilities  under section 80C can be claimed to the extent of 15 % of Actual capital sum assured.)(Threshold Limit 1,00,000Lakh)
  3. Donations made to National Children's Fund will be exempted 100% under Sec 80G.
  4. Rebate of Rs. 2000 for the individual having total income up to 5 lakhs (Section 87A)

    An Assessee, being an individual resident in India, his/her total income does not exceed Rs. 5 Lakhs then he/she shall claim rebate equal to the amount of income tax payable on the total income for the any assessment year or an amount of Rs. 2000, whichever is less.
Pay and Salary and Other Income

Income included in Salary in Brief:

Pay, DA, HRA, CCA, IR, Increments, Commissions, Leave Dues, Pay Advances, Surrender Leave, Pension, Bonus, Honorarium, Tuition Fee Reimbursement etc...

Income excluded from Salary in Brief:
LTC, Gratuity, Commuted Pension, Tour/Transfer TA/DA, PF Payments, Medical Reimbursement, Educational Allowance

Any Income earned from other sources other than Salary shall also be shown in the Other Income



Deducations / Savings Allowed:

    1. Professional Tax
    2. HRA (Conditions Applied. More Details Click on HRA Section Below)
    3. Interest on Housing Loan Advance
    4. Expenditure on Medical Treatment, Handicapped Dependent
    5. Donations to charitable Trusts
    6. Rajiv Gandhi Equity Savings Scheme (50% Amount will Qualify)
    7. And Savings in Salary or  which comes under 80C, 80CCC, 80CCD(1) i.e., APGLI, ZPPF, CPS, GIS, LIC, Term Deposits, Housing Loan Principal, Insurance Premium paid in this Year , 5Years  Fixed Deposits, Tuition Fees. (Only 1 Lakh will qualify from the Total of these Savings mentioned in this Point 7).




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