Income Tax Slab Rates for Assessment Year (AY) 2015-16

I hope you know that every year the Slab Rate is revised in the Financial Budget. In the previous budget (i.e) February 2013, there is no change in the slab rate. Only Rebate Under Section 87A was introduced which gives the assessee Rs. 2,000 credit. This benefit is available to the assessee if his income is below Rs. 5,00,000. So there is no revision in the slab rate as far as AY 2014-2015 is concerned.

But this year budget on 10th July 2014 is not the same. The Income Slab Rate has been revised in this Budget. Let's get into the details one by one.

As usual the Income Slab Rate is divided into 3 categories for Individuals :

1) Residents below 60 years

2) Residents above 60 years but below 80 years. ( Senior Citizen )

3) Residents above 80 years ( Super Senior Citizen )

In this budget the Income Tax Slab rate has been revised for the first two categories Ie for Residents below 60 years and for Senior Citizens. But the Income tax Slab Rate has not been revised for the super senior citizen.

Let's see each of them in detail.

The following Slab Rate is applicable for the assessee who is below 60 years of age.

Mr. X has a total Income of Rs. 11,00,000. He is of 50 years of age. Computation of his Tax Liability is as follows:

The above illustration has been worked out in the previous Assessment Year also. If you compare both, you can see that you are saving Rs.5,000. This is due to increase in the Income Tax Slab Rate from Rs. 2,00,000 to Rs. 2,50,000.

Under this category, the Slab Rate has been increased from Rs.2,50,000 to Rs.3,00,000.

To make it easy to understand, we take the same amount (i.e) Rs.11,00,000/-. But the Assessee is 665 years of age.

In this category there is no change in the slab rate. The slab rate ios same as of the previous year. The exemption limit is Rs.5,00,000

Let's assume that Mr. Y is of 84 years of age and having Total Income of Rs. 11,00,000/-. Let's check the Tax liability using the slab rate for the AY 2014-15

So we have seen the slab rates for all the categories of Individuals. Now we can compare those which gives a clear idea about the rates.

The above comparison will help you how the taxes change based on the exemption limit. And now we will go one step ahead. We compare the exemption limit of AY 2015-16 with AY 2014-15.

Hope you like this article. And also hope that this Budget does not disappoint you. Now it's time for you to take a small quiz.

Just give a try and see how you understands the slab rate.

Thanks for reading this article. If you have any doubts or queries just drop in the comment section below.