Starting with today’s post, we will bring to you a series of articles that will list out the changes in Income Tax for the assessment year 2015-16, which is the financial year 2014-15. The union budget has been approved in the Parliament recently and these changes are in effect. Soon your companies will start to adjust your tax computation to give effect to these changes. Please note these changes are effective 1st April 2014 – though the budget may have been announced or passed later. The good news is – most of you when your employer will take effect of the changes in the month of August (budget was passed in parliament in the last few days of July), can expect higher payout due to the change in the minimum taxable income which is exempt.
Today, let us look at Income Tax Slabs for the Financial Year 2014-15 and also of the last financial year.
Note that there is no change in the tax rates, the only change is the increase in the minimum income exemption, up from Rs 2,00,000 to Rs 2,50,000 for this year. No change in Education Cess or Surcharge.
In our next post – we will look at changes in Section 80C and increase in PPF investment limit. This is a good time to start considering how you would like to maximize your investments and tax savings and get the most benefit from Section 80C – do watch out for our next post!