Income Tax Act and Income Tax Calculation for 2014-15 for AY 2015-16
Income Tax Act and Income Tax Calculation for 2014-15 for Employees and Teachers. Income Tax Deduction from Salaries During The Financial Year 2014-15 under Section 192 of the Income Tax, Act.1961. Vide Circular No.17/2014 F.No. 275/192/2014-IT(B) Dated 10.12.14,
Govt of India has released the Guidelines for Calculation of Income Tax
for Salaried Employees, Teachers for 2014-15. Reference is invited to
Circular No.08/2013 dated 10.10.2013 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 2013-2014, 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.
Important Changes made in Income Tax Act from 2014-15 AY 2015-16
Income included in Salary in Brief:
Income Tax Calculation 2014-15 and Income Tax Act for 2015-16
Rates of Income Tax for 2014-15 as per Finance Act 2014.
As per the Finance Act, 2014, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2014-15 (i.e.Assessment Year 2015-16) at the following rates.
As per the Finance Act, 2014, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2014-15 (i.e.Assessment Year 2015-16) at the following rates.
| Income Tax Normal Slabs below 60 Years | Income Tax Rate | |
|---|---|---|
| i. | Where the total income does not exceed Rs. 2,50,000/-. | NIL |
| ii. | Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. | 10% of amount by which the total income exceeds Rs. 2,50,000/-. (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. 25,000/- + 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. 1,25,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-. |
Important Changes made in Income Tax Act from 2014-15 AY 2015-16
- Vide Finance Act 2014, 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. If in case of above loan the interest claimed during AY 2014-15 is less than Rs. 1,00,000/- then the balance amount is allowed in AY 2015-16.(Section 80EE)
- Deduction in respect of Life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. (section 80C) is allowed subject to a limit of Rs.1,50,000/-
- Donations made to National Children's Fund will be exempted 100% under Sec 80G.
- Continued : Rebate of Rs. 2000 Finance Act 2013 provided relief in the form of rebate to individual taxpayers, resident in India, who are in lower income bracket, i. e. having total income not exceeding Rs 5,00,000/-. The amount of rebate is Rs 2000/- or the amount of tax payable, whichever is lower. This rebate is available for A.Y. 2014-15 and subsequent assessment years.
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:
Any Income earned from other sources other than Salary shall also be shown in the Other Income
Deducations / Savings Allowed:
- Professional Tax
- HRA (Conditions Applied. More Details Click on HRA Section Below)
- Interest on Housing Loan Advance
- Expenditure on Medical Treatment, Handicapped Dependent
- Donations to charitable Trusts
- Rajiv Gandhi Equity Savings Scheme (50% Amount will Qualify)
- 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).
More Detailed Information- Section Wise:
- IT Deductions (Savings) allowed under Chapter VI-A (Sec 80C etc) (Up to 1,50,000 Lakh) and Above
- Income that can be calculated in the Head Salaries
- Which Income is Exempted under the Head Salaries
- How to Get Rs.2000 Rebate under Sec 87A of Income Tax Act
- Calculation of HRA Exemption
- Calculation of Interest and Loan on House Building Loan
- Find Your Salary Details Online Click Here
- Income Tax Useful Forms
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