Income Tax Act and Income Tax Calculation for 2013-14 for AY 2014-15

Income Tax Act and Income Tax Calculation for 2013-14 for Employees and Teachers. Income Tax Deduction from Salaries During The Financial Year 2013-14 under Section 192 of the Income Tax, Act.1961. Vide Circular No.08 /2013 F.No. 275/192/2013-IT(B) Dated 10.10.13, Govt of India has released the Guidelines for Calculation of Income Tax for Salaried Employees, Teachers for 2013-14. Reference is invited to Circular No.08/2012 dated 05.10.2012 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 2012-2013, 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.

Income Tax Calculation 2013-14 and Income Tax Act for 2013-14

Rates of Income Tax for 2013-14 as per Finance Act 2013.
As per the Finance Act, 2013, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2013-14 (i.e.Assessment Year 2014-15) at the following rates.
Income Tax Normal Slabs below 60 Years Income Tax Rate
i.Where the total income does not exceed Rs. 2,00,000/-.NIL
ii.Where the total income exceeds Rs. 2,00,000/- but does not exceed Rs. 5,00,000/-.10% of amount by which the total income exceeds Rs. 2,00,000/-.
(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. 30,000/- + 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. 130,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Important Changes made in Income Tax Act from 2013-14 AY 2014-15
  1. Vide Finance Act 2013, 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.(Section 80EE)
  2. Section 80C (Deduction of premium amount of life Insurance covering the life of persons with disabilities  under section 80C can be claimed to the extent of 15 % of Actual capital sum assured.)(Threshold Limit 1,00,000Lakh)
  3. Donations made to National Children's Fund will be exempted 100% under Sec 80G.
  4. Rebate of Rs. 2000 for the individual having total income up to 5 lakhs (Section 87A)
    An Assessee, being an individual resident in India, his/her total income does not exceed Rs. 5 Lakhs then he/she shall claim rebate equal to the amount of income tax payable on the total income for the any assessment year or an amount of Rs. 2000, whichever is less.
Pay and Salary and Other Income
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:
  1. Professional Tax
  2. HRA (Conditions Applied. More Details Click on HRA Section Below)
  3. Interest on Housing Loan Advance
  4. Expenditure on Medical Treatment, Handicapped Dependent
  5. Donations to charitable Trusts
  6. Rajiv Gandhi Equity Savings Scheme (50% Amount will Qualify)
  7. 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:

Downloads:

Model Illustration on Calculation of Income Tax

Here is the Model Income Tax Calculation for Salaried Employees taken from the magazine Ikyopaadhyaaya.
Model Income Tax Calculation apteachers

26 comments:

  1. MAY I GET REBATE U/S 87A IF MY SALARY INCOME + OTHER INCOME (COMMISSION FROM LIC) IS RS. 250000/- AFTER DEDUCTION U/S 80C. PLZ REPLY.

    ReplyDelete
    Replies
    1. yes you can get rebate u/s 87A as ur net income is below 5,00,000

      Delete
  2. sir,what about CSS Arrears?It is taxable income or not?already in every assesment year i showed this amount.some are telling it is taxable income.PLZ REPLY.
    mail id:lingamguntaravindra15@gmail.com

    ReplyDelete
    Replies
    1. No need to show CSS arrears Principle Amount as it was shown in previous IT Returns in DA Arrears. But the Interest amount should be shown.

      Delete
  3. sir last date to apply income tax form...

    ReplyDelete
  4. sir,what about CSS Arrears?It is taxable income or not?already in every assesment year i showed this amount.some are telling it is taxable income.PLZ REPLY.

    ReplyDelete
    Replies
    1. No need to show CSS arrears Principle Amount as it was shown in previous IT Returns in DA Arrears. But the Interest amount should be shown.

      Delete
  5. please tell how to receive msgs from ur site on mobile.we are not getting msgs from last 2 months.

    ReplyDelete
  6. sir please mail me once to this id venkat2342@gmail.com i have more doubts about income tax, i am paying more tax, i dont know how to calculate IT

    ReplyDelete
  7. SIR. I AM VERY MUCH CONFUSED ABOUT THE DEDUCTION U/S 80C OF LIC PREMIUM PAID UPTO 15% (PREVIOUSLY 20%) OF SUM ASSURED. HOW TO CALCULATE THIS?? I CANNOT FIND SUM ASSURED AMOUNT IN MANY LIP RECEIPTS.. HOW CAN I BE SURE THAT THE AMOUNT MENTIONED IN RECEIPT IS LESS THAN 15% OF SUM ASSURED
    ???

    ReplyDelete
  8. Thank u sir! we have update information from ur site! keep it up sir!

    ReplyDelete
  9. sir can i include my wife tution fee in tax rebate as i am paying her an amount of 80k per year

    ReplyDelete
    Replies
    1. As per the Income Tax Act, Only the Tuition Fee paid for the purpose of full-time education of any two Children of the employee is eligible u/s 80C. Wife and other dependents are NOT INCLUDED.

      Delete
  10. Income Tax For the Financial Year 2013 -2014
    Model Income Tax Programme Updated on 23-02-2014 http://ibknellore.blogspot.in
    Model Income Tax Up to 1200 Employees at a time Updated on 23-02-2014
    Check Your Salary Details through online Using Treasury
    Note:--
    1.Our Incometax Excel Programme Fill in Main Sheet then Automatically Generated Required Forms.
    Before Printing Use the Auto Filters { Cell L3 in SB, Cell V3 in Statement and Cell N8 in Form16 } Must be Select (Default Select 1, Blanks Non-Select) and then Enter OK Button. Then Take Print Out. This is Most important in our Programme.
    2. Any Other Arrears Fill in Row 19 & 20 in Statement Sheet

    3. If Select CPS in Cell F22 in Main then Automatically Appeared taking CPS Employers Contribution Cell L 14 in Main , Row 37 in SB & Row 43 in Form 16. The Amount is Deducted Under Section 80 CCD (2) Limit to 10% of (Pay + DA). But Not Sealing Rs: 100000/- Limit. (Testing income Tax Calculator) .

    4. Housing Loan Taken in Between 01-04-2013 To 31-03--2014 (F.Y-2013--2014 ) . U/s 80EE The Deductable Interest Rs:100000/- in Additional to 24B Income From House Property (1,50,000). Hence the Housing Loan Taken in the Financial Year Deduction related to Interest UP to Rs : 2, 50,000 for Self Occupied Property. There is No Limit in Let out Property. (Testing income Tax Calculator) .
    INCOME TAX SOME CLARIFICATIONS
    1.CPS
    section 80CCE the aggregate amount of deduction under sections 80C, 80CCC and Section 80CCD(1) shall not exceed Rs.1,00,000/-. However the contribution made by the Central Government or any other employer to a pension scheme u/s 80CCD(2) shall be excluded from the limit of Rs.1,00,000/- provided under this Section. - Download

    2. Rounded To Nearest Rs:10/- Download IT Circular with Examples

    3. Housing Loan- 1.Download IT Act 2. Download With Examples 3. Check IT Calculator in IT Website

    4. Income Tax Slabes , Rebate U/s 87A , 80U, 80DDB -Download

    5. IT Circular Complete Download

    6. Our IT Programme (All AP State Government Employee with RPS-2010 & UGC-2006 Applicable )- Download Update on 23/02/2014 (Housing Loan)

    7. DDO wise Excell Programme ( This is Very Use full for MRCs, Other Offices UPTO 1200 Employees )- Download Update on 23/02/2014 (Housing Loan) (IKPET MRC)
    8.Employee Salary Details (Check Your Salary Details through online)

    ReplyDelete
  11. Sir
    Please clarify A teacher paid insurance premium ULIP policy in March 2013. Is that amount eligible to deduct under 80C for the year 2013-14

    ReplyDelete
  12. Sir,
    If a teacher not claimed salary as the tax non deducted on self consent. Bt now how to draw salary as STO is asking to pay tax and then submitt yhe bill.
    Can u pls explain how to pay tax manually and hw to proceed.

    ReplyDelete
  13. sir
    Is it necessary that the assessee should have the salary income only or have different incomes also like property,pgbp.

    ReplyDelete
  14. Sir, pls clarify A teacher paid 2000 less f4 onelakh saving?

    ReplyDelete
  15. Awesome information. I have been searching for a website with complete information about IT tax and my search ends here. Hopefully all the information are correct and updated regularly. Will definitely suggest to others

    ReplyDelete
  16. I always use online Income Tax Calculator tool to compute my taxes.

    ReplyDelete
  17. Sir! Can a senior citizen having taxable income less than 500000 also claim benefit relief of tax 2000? Kindly confirm. Thanks

    ReplyDelete
  18. In which section of Chapter VI-A, 1 lac limit is excluded.could you please provide the whole details.

    ReplyDelete
  19. Educating or tutoring just about any proficiency is a incredibly successful business. In any earn money village of just about any size you will see a minimum .

    ReplyDelete
  20. dear Sir, I am a private tutor . How can I show my expenses related to my classes such as booking classes by phone calls , internet charges, electricity bill, vehicle allowance , buying necessary books . Are they tax deduct able ? if so how can I show that in ITR 2

    ReplyDelete
  21. Sir, I have paid donation of Rs.40000/- to 'Mother India Education Society' registered under Bom. Public Trust Act. 1950 F-11673 (Bom). Whether it is eligible for Income Tax deduction under 80G. If yes, what is the limit of maximum deduction ?

    ReplyDelete