How do the changes in income tax slabs and deductions in 2014-15 affect you?

Income tax slabs for the financial year 2013-14 for an Indian citizen below 60 years of age

Mr Diwakar aged 36 years married and working in an IT firm earns INR 8 Lakhs per annum. He makes use of the Section 80 C deductions of INR 1 Lakh and pays INR 50000 per annum as premium on his endowment life insurance policy. This amount is tax deductible when calculating income taxes under Section 80 C of the income tax act. If you want to learn more on Section 80 C of the income tax act please read

He also invests INR 50000 per annum in a public provident fund (PPF). This amount is tax deductible when calculating income taxes under Section 80 C.

Mr Diwakar has a family floater health insurance plan for himself and his wife and he claims a deduction of INR 15000 per annum on the health premium paid under Section 80 D of the income tax act.

A deduction of INR 20000 is also claimed on the premium paid for the health insurance policy of his parents who are senior citizens over 60 years of age under Section 80 D. The total income tax deductions claimed by Mr Diwakar under Section 80 D of the income tax act is INR 35000.

 

 

Mr Diwakar’s income tax liability is calculated as per the income tax slab he falls under.

 

Mr Diwakar pays an income tax of INR 64890 on his salary after availing deductions under Section 80 C and Section 80 D of the income tax act.

Income tax slabs changed under the Union Budget 2014-15

Income tax slabs for the financial year 2014-15 for an Indian citizen below 60 years of age:(A free guide on how to calculate your income tax under the changed tax structure)

 

Section 80 C exemption limits have been raised to INR 1.5 Lakhs in the Union Budget 2014-15

 

Mr Diwakar avails deductions under Section 80 C and Section 80 D of the income tax act just as in the previous year

 

 

Mr Diwakar’s income tax liability is calculated as per the newly introduced income tax slabs in the Union budget 2014-15.

 

 

Conclusion :