Calculation of income tax for financial year 2013-14
To start discussion about how to calculate income tax for financial year 2013-14, first let us discuss various income tax slabs for financial year 2013-14:
Financial year 2013-14 is started from April 1 2013 and there may be deduction of advance tax by employers. One of the readers asked me about various income tax slabs for the financial year 2103-14 or assessment year 2014-15. The following are the income tax slabs for the FY 2013-14:
For males: No change in income tax slab for FY 2013-14 and it is same as FY 2012-13,
For females: No change in income tax slab for FY 2013-14 and it is same as FY 2012-13,
For senior citizens (In between age 60 – 80 years): No change in income tax slab for FY 2013-14, and it is same as FY 2012-13
For Senior Citizens above 80 years: No change in income tax slab for FY 2013-14 and it is same as FY 2012-13, (Also read: How senior citizens can save income tax)
Thus income tax slabs for FY 2013-14 are same as FY 2012-13. You can read the income tax slabs for FY 2012-13 in my following earlier authored article:
Calculation of income tax for FY 2013-14:
If you belong to any of the above mentioned category and your income lies in between 2 to 5 lakhs, then you can deduct Rs. 2000 from your overall income tax and that will be your final income. For example:
If person ‘A’ who is male has annual income 3 lakh and you have not invested any of the tax saving schemes (you can read about various saving schemes here: How to save income tax for financial year 2012-13), then for a male there is no income tax from :
0 – 2 lakh: No tax
2-3 lakh: 10% tax that is Rs. 10000,
Thus person ‘A’ can subtract Rs. 2000 from Rs. 10000, thus the total income tax payable will be Rs. 8000.
Thus by above method, females, senior citizens can calculate the income tax.