June 17th, 2013

Income Tax slab and rates for FY 2013 – 2014

Income Tax Slab And Rates

From the time our honorable Finance Minister P. Chidambaram proposed the Union Budget for the year 2013-2014, tax payers heaved a sigh of relief as the income tax rates were left unchanged. Well, with the increase in fiscal deficit, there is little that our Finance Minister could have done about increasing the tax rates!

Now with tax filing norms being made simple and with the ability to submit Income Tax returns online, complications and confusions yet persist among the people. So if you are looking for a basic understanding of income tax, whether you fall into the bracket of a tax payer or not, continue reading below and you will know how simple the tax filing process is all about.

First, let us understand a few terminologies that every tax payer need to know before you understand what is income tax -

1. Financial Year - Usually written as FY in financial terms, a financial year constitutes the time period from the 1st of April (of a present year) until the 31st of March (of the following year) in India. During a financial year, every individual, companies, authorities, societies and any entities that are liable for taxes, would update their financial earnings with the Government.

2. Assessment Year - Usually known as AY in financial terms, an assessment year is when the Income Tax department will assess the tax filings that were filed for the previous year. Keep in mind that an assessment year also starts on the 1st of April (of the present year) and ends on the 31st of March (of the following year) but the only difference being, an assessment year follows the previous years’ financial year.

For example, if a financial year were between 1st April 2013 until 31st of March 2014, then the assessment year would be from 1st April 2014 until 31st of March 2015.

Now that you understood the basic terminologies, let us understand the different income tax slabs and rates-

1. If you are an Indian resident aged below 60 years, both men and women will pay taxes based on the following income tax table –

Income Tax Slab and Rates – FY 2013 – 2014

Net Taxable income (per year) are between Income Tax Rates
0 – 2,00,000 Nil
2,00,001 – 5,00,000 10%
5,00,001 – 10,00,000 20%
10,00,000 – 1,00,00,000 (1 Cr.) 30%
Above 1,00,00,000 (1 Cr.) 40% (i.e. 30% + 10% Surcharge)

NOTE: The 10% surcharge applies not only to individuals but also for companies, organizations, Partnership Firms and all other entities that are liable for tax.

If you are an individual taxpayer aged below 60 years, and if your income is below 500,000 per year, you get a rebate Rs.2000. Also note that education cess and surcharge are not included in the taxes.

Education Cess: 3% of the Income tax.

2. If you are an Indian resident above 60 years (senior citizens category) but below 80 years, you pay taxes based on the following income tax table –

Income Tax Slab and Rates – FY 2013 – 2014

Net Taxable income (per year) are between Income Tax Rates
0 – 2,50,000 Nil
2,50,001 – 5,00,000 10%
5,00,001 – 10,00,000 20%
Above 10,00,000 30%


Education Cess:
 3% of the Income tax.

3. If you are an Indian resident above 80 years (very senior citizens category), you pay taxes based on the following income tax table -

Income Tax Slab and Rates – FY 2013 – 2014

Net Taxable income (per year) are between Income Tax Rates
0 – 5,00,000 Nil
5,00,001 – 10,00,000 20%
Above 10,00,000 30%


Education Cess:
 3% of the Income tax.

However, note that for Companies and other entities, the tax rates are completely different (except for the 10% surcharge that applies for incomes above Rs.1 Crore) and do not come under Individual taxpayers’ slab.

Want to calculate your income tax to file your tax return?? You can do it using our income tax calculator!

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