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

Updated on July 11, 2014

Income Tax Slab Rate AY 2015-2016 - An overview

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.

Individuals :

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.

Individuals below 60 years of age

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

Income
Tax Rate
Where the Total Income does not increase Rs. 2,50,000
NIL
Where the Total Income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000
10%
Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000
20%
Where Total Income exceeds Rs. 10,00,000
30%

Illustration

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:

Income
Tax Rate
First Rs.2,50,000
NIL
Rs.2,50,001 to Rs.5,00,000
Rs.25,000(10%)
Rs.5,00,001 to Rs.10,00,000
Rs.1,00,000(20%)
Rs.10,00,001 to Rs.11,00,000
Rs.30,000(30%)
Total
Rs.1,55,000

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.

Resident Individuals above 60 years but below 80 years

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

Income
Tax rate
Where the total income does not exceed Rs. 3,00,000/-.
NIL
Where the total income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-
10%
Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-
20%
Where the total income exceeds Rs. 10,00,000/-
30%

Illustration :

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.

Income
Tax Rate
First Rs. 3,00,000
NIL
Rs.3,00,001 to Rs.5,00,000
Rs.20,000 (10%)
Rs.5,00,001 to Rs.10,00,000
Rs.1,00,000 (20%)
Rs.10,00,001 to Rs.11,00,000
Rs.30,000 (30%)
Total
Rs.1,50,000

Resident Individuals above 80 years

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

Income
Tax Rate
Where the Total Income is below Rs.5,00,000/-
NIL
Where the Total Income exceeds Rs.5,00,000 but does not exceed Rs.10,00,000
20%
Where the Total Income exceeds Rs.10,00,000/-
30%

Illustration

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

Income
Tax Rate
Upto Rs.5,00,000
NIL
Rs. 5,00,001 to Rs.10,00,000
Rs.1,00,000 (20%)
Rs.10,00,001 to Rs. 11,00,000
Rs.30,000 (30%)
Total
Rs.1,30,000

Comparing all three categories

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.

Basis
Basic Exemption Limit
Tax Liability
Individuals Below 60 years of age
Rs.2,50,000
Rs.1,55,000/-
Individuals above 60 years of age but below 80 years of age
Rs.3,00,000
Rs,1,50,000/-
Individuals above 80 years of age
Rs.5,00,000
Rs.1,30,000/-

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.

Basis
Basic Exemption Limit (AY 2015-16)
Basic Exemption Limit (AY 2014-15)
Individuals Below 60 years of age
Rs.2,50,000
Rs.2,00,000
Individuals above 60 years of age but below 80 years of age
Rs.3,00,000
Rs.2,50,000
Individuals above 80 years of age
Rs.5,00,000
Rs.5,00,000

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.

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