The Budget for 2014 have come and we present you the Highlights
Rates of Income Tax:
- Basic exemption limit raised to Rs.250000 for an individual and senior citizen are not liable to pay tax on income upto Rs.300000.
- Slabs rates are as under:
A:
| Slabs (in Rs.) | General |
| Upto 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 10% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
|
Slabs (in Rs.) |
Senior Citizen (60 to 80 yrs) | Very Senior Citizen (more than 80yrs) |
| Upto 3,00,000 | Nil | Nil |
| 300,001 – 5,00,000 | 10% | Nil |
| 5,00,001 – 10,00,000 | 20% | 20% |
| Above 10,00,000 | 30% | 30% |
- Surcharge :There is no change in surcharge & marginal relief:
- The amount of income tax computed in accordance with the above rates shall be increased by a Surcharge at the rate of 10% of such income-tax in case of a person having a total income exceeding Rs. 1crore.
Marginal Relief: The total amount payable as income-tax and surcharge on total income exceeding Rs. 1crore shall not exceed the total amount payable as income tax on a total income of Rs. 1crore by more than the amount of income that exceeds Rs. 1crore.
Cess: ‘Education Cess’ @ 2% and ‘Secondary and Higher Education Cess’ @ 1% on income tax shall be chargeable.
Investment Limit under S.80C:
It has been increased from existing limit of Rs.1,00,000 to Rs.1,50,000
Income from House Property : Deduction u/s Section 24(b):
Deduction u/s 24(b) on account of interest on housing loan has been increased from Rs.1,50,000 to Rs.2,00,000
Annual ceiling of PPF:
Annual ceiling of investment in Public Provident Fund is increased from Rs.1,00,000 to Rs.1,50,000
Disclaimer: Budget proposal presented by Finance Minister before the Parliament, relevant for salaried assesses, are summarized above. The proposals are subject to amendments as the Finance Bill is yet to be passed by the Parliament. This document is not an offer, invitation or solicitation of any kind and is meant for use of clients and Company/firm’s personnel only. DKM accepts no responsibility for any loss caused by person relying on it.