Skip to content. | Skip to navigation

You are here: Home / Salary / Budget 2013-14
 

Income Tax Slabs and Rates for 2013-14

This page contains New Income Tax rates and slabs for various categories of Indian Income Tax payers. Know tax slabs for Individuals and HUF, Individual resident who is of the age of 60 years or more but below the age of 80 years.

Description

Income Slabs

Income Tax Rate

Age below 60 years

Upto Rs. 2,00,000

Nil

Rs 2,00,001 to Rs 5,00,000

10% on the total income exceeding Rs. 2,00,000

Rs 5,00,001 to Rs 10,00,000

Rs. 30,000 + 20% on the total income exceeding Rs. 5,00,000

Rs 10,00,001 and above

Rs. 1,30,000 + 30% on the income exceeding Rs, 10,00,000

Age 60-79 years

UptoRs. 2,50,000

Nil

Rs2,50,001to Rs 5,00,000

10% on the total income exceeding Rs. 2,50,000

Rs 5,00,001 to Rs 10,00,000

Rs. 25,000 + 20% on the total income exceeding Rs. 5,00,000

Rs 10,00,001 and above

Rs. 1,25,000 + 30% on the income exceeding Rs, 10,00,000

Age above 80 years

UptoRs 5,00,000

Nil

Rs 5,00,001 to Rs 10,00,000

20% on the total income exceeding Rs. 5,00,000

Rs 10,00,001 and above

Rs. 1,00,000 + 30% on the income exceeding Rs, 10,00,000

Association of Persons and Body of Individuals

UptoRs. 2,00,000

Nil

Rs 2,00,001 to Rs 5,00,000

10% on the total income exceeding Rs. 2,00,000

Rs 5,00,001 to Rs 10,00,000

Rs. 30,000 + 20% on the total income exceeding Rs. 5,00,000

Rs 10,00,001 and above

Rs. 1,30,000 + 30% on the income exceeding Rs, 10,00,000

Co-operative Society

UptoRs. 10,000

10%

 

Rs. 10,001 to Rs. 20,000

Rs. 1,000 + 20% on income exceeding Rs. 10,000

 

Rs. 20,001 and above

Rs. 3,000 + 30% on income exceeding Rs. 20,000

Firm

---

30% of total income

Local Authority

---

30% of total income

Domestic Company

---

30% of total income

Company other than a Domestic Company

----

@ 50% of on so much of the total income as consist of (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government.

@ 40% of the balance

 

 

What impact does the new budget have on you?

Stakeholders

Positive

Negative

Neutral

Tax Payers

A notional rise in the threshold exemption, by providing a tax credit of Rs. 2000 to every person who has total income uptoRs. 5,00,000

Surcharge of 10% on persons whose taxable income exceeds Rs. 1 Crore per year

No change in income tax rates and slabs

Contributions made to the Central Government Health Scheme (State Governments also) are eligible for deduction under section 80D of Income Tax Act

Rate of tax on payments by way of royalty and fees for technical services to non-residents increased from 10% to 25%.

Education Cess unchanged at 3%

Donations made to the National Children’s Fud made eligible for 100% deduction

 

 

Consumers

Affordable Housing has been encouraged: Provides for an additional deduction of interest uptoRs 1 lac (over and above Rs 1.5 lacs) for a person taking his first home loan not exceeding Rs 25 lac. If the limit remains unexhausted, it can be utilised in FY 2014-15.  

Increase in specific duty on cigarettes, cigars, cheroots and cigarillos by about 18%

No change in the peak rate of basic customs duty of 10% for non-agricultural products

Reduction in duty on specific machinery for manufacture of leather and leather goods, including footwear, from 7.5% to 5%.

Increase in duty from 5% to 10% on set top boxes

No change in the normal rate of excise duty of 12%

Reduction in duty on pre-forms of precious and semi-precious stones from 10% to 2%

Increase in duty on raw silk from 5 to 15%

No change in the normal rate of service tax of 12%

Duty free limit for brining gold jewellery raised to 50,000 in case of male passenger and 100,000 in case of a female passenger

Increase in luxury motor vehicles from 75% to 100%, on motorcycles with engine capacity of 800cc or more from 60% to 70% and on yachts and similar vessels from 10% to 25%

Spare-parts of electric and hybrid vehicles (prices may remain unchanged) - Concessions in custom duty have been extended upto 31 March 2015

Handmade carpets and textile floor coverings exempted from excise duty.

Increase in excise duty on SUVs from 27% to 30% (not on taxis)

 

MRP based assessment in respect of branded medicaments of Ayurveda, unani, siddha, homeopathy and bio-chemic systems of medicines, there will be an abatement of 35%.

The excise duty rate on marble increased from 30 per sq. mt. To 60 per sq.mt.

 

Readymade garment (Cotton) - No excise duty at fiber stage 

 

On mobile phones priced at more than 2000, the duty increased from 1% to 6%

 

Vocational courses offered by state-affiliate institutes to be exempted form paying services tax

Levy service tax on all air conditioned restaurants

 

Investors

Instruments protecting savings from inflation would be introduced: Inflation linked savings instruments would protect the real rate of returns and minimise the impact of inflation

TDS at the rate of 1% on the value of the transfer of immovable property where the consideration exceeds 50 Lakhs (Agricultural land exempted)

 

Incentive to first time investors (in equity markets): The scope of Rajiv Gandhi Equity Savings Scheme (RGESS) would be extended. The scheme has been extended to individuals with annual income of Rs 12 lac from earlier limit of Rs 10 lac. To add it up, the benefits can now be claimed for 3 successive years by contributing in each year. 

Final withholding tax at the rate of 20% on profits distributed by unlisted companies to shareholders through buyback of shares

 

More Tax Free Bonds: The budget has proposed to issue Tax free infrastructure bonds worth Rs 50,000 crore in FY 2013-14 for companies investing Rs. 100 crore in plant and machinery by April 1, 2013.

Your Dividend income may fall: Dividend Distribution tax on debt oriented mutual funds is increased from 12.5% to 25% for individuals and HUFs. Furthermore, surcharge on dividend distribution tax has also been raised from 5% to 10%.

 

  • More IPOs/ FPOs from PSEs: The government has set a disinvestment target of Rs 40,000 crore as against the target of Rs 30,000 core set for the current fiscal, which means more IPOs and FPOs from PSEs

 

 

  • Transactions in capital markets to cost less: Security Transaction Tax (STT) in futures segment of equity has been lowered from current 0.017% to 0.01%. On the other hand, For Mutual Funds and Exchange Traded Funds (ETFs), STT at the time of redemption would be charged at 0.001% which is 0.25% at present. Transactions of Mutual Funds and ETFs on stock exchanges would attract STT of 0.001% which lowers from the current rate of 0.125%

 

 

  • Getting Insurance cover is easier than before: KYC will not be a hurdle for getting insurance. The KYC submitted to banks would be sufficient to get you a new insurance cover. Some banks would become insurance brokers.

 

 

Businessmen

Export duty on de-oiled rice bran oil cake withdrawn.

Surcharge of 10% on firms and entities whose taxable income exceeds Rs. 1 Crore per year

Education Cess unchanged at 3%

 

Zero customs duty for electrical plants and machinery

Foreign companies whose taxable income exceeds Rs. 10 crore per year, the surcharge increased from 2% to 5%

 

 

 

Dividend distribution tax or tax on distributed income, surcharge increased from 5% to 10%

 

Share |