Finance minister Mr. Chidambaram did not make any changes to the income tax slabs in his budget speech presented on 28th of February, 2013 except an additional 10% tax for the 'super rich' people and a small deduction of Rs.2000 for those under 5Lakh limit.
Also there are no major changes to the existing tax rules nor additions to save income tax.
Find below the tax slabs for 2013-2014:
Click here to know how to save maximum income taxIncome tax slabs - General Category for the FY 2013-2014
| Income tax slab | Tax |
|---|---|
| 0 to 2,00,000 | No tax |
| 2,00,001 to 5,00,000 | 10 percentage |
| 5,00,001 to 10,00,000 | 20 percentage |
| Above 10,00,000 | 30 percentage |
Income tax slabs - Women for the FY 2013-2014
| Income tax slab (in Rs.) | Tax |
|---|---|
| 0 to 2,00,000 | No tax |
| 2,00,001 to 5,00,000 | 10 percentage |
| 5,00,001 to 10,00,000 | 20 percentage |
| Above 10,00,000 | 30 percentage |
Income tax slabs - Senior citizen(60 to 80) for the FY 2013-2014
| Income tax slab (in Rs.) | Tax |
|---|---|
| 0 to 2,50,000 | No tax |
| 2,50,001 to 5,00,000 | 10 percentage |
| 5,00,001 to 10,00,000 | 20 percentage |
| Above 10,00,000 | 30 percentage |
Income tax slabs - Very Senior citizen(above 80) for the FY 2013-2014
| Income tax slab (in Rs.) | Tax |
|---|---|
| 0 to 5,00,000 | 0 percentage |
| 5,00,001 to 10,00,000 | 20 percentage |
| Above 10,00,000 | 30 percentage |
Additional changes to income tax rules for 2013-2014
Tax Credit of Rs.2,000 - A tax deduction of Rs.2,000 is allowed if the annual income is between 2Lakh and 5Lakh.
10% surcharge - A surcharge of 10% is applicable for individuals earning above Rs.1 Crore(classified as 'super rich')
Changes to Tax Saving Options
- Rajiv Gandhi Equity Savings Scheme - Section 80CCG - Increased the income limit to 12Lakhs and the period extended to 3 years.
- Section 80EE - New home buyers can declare additional 1Lakh interest if the cost of the property is below 40Lakh and the loan amount is below 25Lakh.
- National Children Fund - Section 80G now includes National Children Fund which exempts tax for donations paid to specified institutions.