Income tax slabs for General tax payers and Women for FY 2014-15

(Subject to change depending on Union budget to be announced after General Elections)

Income tax slab (in Rs.) Tax
0 to 2,00,000 No tax
2,00,001 to 5,00,000 * 10% **
5,00,001 to 10,00,000 20% **
Above 10,00,000 30% **

* Tax rebate of Rs 2,000/= for those, whose taxable income is less than Rs 5.0 L pa
** In addition, there will be education cess of 3% on the TDS amount payable

Illustration 1
Employee A Taxable income of Rs 4,00,000/= (Rupees Four Lakhs only) per annum

Tax calculation will be as follows :

Upto Rs 2,00,000/= NIL Tax
2,00,001 to 4,00,000/= 10% Tax, which is Rs 20,000/= per annum
(-) Tax rebate of Rs 2,000/= per annum for this category

Hence, total tax deduction (TDS) will be Rs 18,000/= + 3% Cess of Rs 540/=, totalling to Rs.18,540/=
per annum for employee A.

Illustration 2
Employee B Taxable income of Rs 6,00,000/= (Rupees Six Lakhs only) per annum

Tax calculation will be as follows :

Upto Rs 2,00,000/= NIL Tax
2,00,001 to 5,00,000/= 10% Tax, which is Rs 30,000/= per annum
5,00,001 to 6,00,000/= 20% Tax, which is Rs 20,000/= per annum

Hence, total tax deduction (TDS) will be Rs 50,000/= + 3% Cess of Rs 1,500/=, totalling to Rs 51,500/=
per annum for employee B.

Illustration 3
Employee C Taxable income of Rs 11,00,000/= (Rupees Eleven Lakhs only) per annum

Tax calculation will be as follows :

Upto Rs 2,00,000/= NIL Tax
2,00,001 to 5,00,000/= 10% Tax, which is Rs 30,000/= per annum
5,00,001 to 10,00,000/= 20% Tax, which is Rs 1,00,000/= per annum
10,00,001 to 11,00,000/= 30% Tax, which is Rs 30,000/= per annum

Hence, total tax deduction (TDS) will be Rs 1,60,000/= + 3% Cess of Rs 4,800/=, totalling to
Rs.1,64,800/= per annum for employee C.
* * * * *