The 2013-2014 Union Budget India new tax slabs and DTC Bill


This article provides complete information about what is the 2013-2104 Union Budget's new income tax slabs for salaried individuals in India. You will also get details of the new income tax to be paid by senior citizens. The Direct Taxes Code (DTC) Bill is proposed to be passed during the current budget session. In this article you will get to know features of the DTC Bill.

Overview


One of the major expectations of the 2013-2014 Union Budget of India was the hope that there would be some reduction in tax rates. It is reported that there are about 89% of total taxpayers whose earnings are less than Rs.5lakh while 5.5% earn between Rs.5-Rs.10lakh, 4.3% between Rs.10-20lakh and 1.3% earn more than Rs.20lakh. The salaried class in the income group of less than 20lakh had hoped that additional deductions would help them to save more. However, the Finance Minister P.Chidambaram did not change the personal income tax slabs at all. He did, though, offer concessions for those in the lower end of the taxable bracket. Those with annual incomes of up to Rs.5lakh will avail of a tax deduction of Rs.2,000/- from the tax due. The Finance Minister's reasoning behind the unchanged tax slabs was that they were introduced only a year earlier and hence did not need any revision.

It has also been proposed to set up a Tax Administration Reform Commission. The aim of establishing this panel is to give stability to the tax system as a whole and make the tax laws more clear. A major function of this panel would be to provide a platform for resolving cases related to tax disputes.

2013-2014 Personal Income Tax slabs


2013-2014 Income Tax Slabs for Working Women


Unfortunately working women have neither got enhanced tax exemptions nor any unique instruments through which they can save their earnings or invest it.
Income | New Tax | Old Tax
Rs. 2 lakh | No tax | No tax
Rs. 5 lakh | Rs.28,840/- | Rs.30,900/-
Rs. 8 lakh | Rs.92,700/- | Rs.92,700/-
Rs. 10 lakh | Rs.1,33,900/- | Rs.1,33,900/-
Rs. 25 lakh | Rs.5,97,400/- | Rs.5,97,400/-
Rs. 50 lakh | Rs.1,369,900/- | Rs.1,369,900/-
Rs.100 lakh | Rs.2,914,900/- | Rs.2,914,900/-
Rs.110 lakh | Rs.3,546,290/- | Rs.32,223,900/-

2013-2014 Income Tax Slabs for Working Men


The only relief for working men is that those who are getting earnings of up to Rs.5 lakh per year will get a tax deduction of Rs.2,060/-.
Income | New Tax | Old Tax
Rs. 2 lakh | No tax | No tax
Rs. 5 lakh | Rs.28,840/- | Rs.30,900/-
Rs. 8 lakh | Rs.92,700/- | Rs.92,700/-
Rs. 10 lakh | Rs.1,33,900/- | Rs.1,33,900/-
Rs. 25 lakh | Rs.5,97,400/- | Rs.5,97,400/-
Rs. 50 lakh | Rs.1,369,900/- | Rs.1,369,900/-
Rs.100 lakh | Rs.2,914,900/- | Rs.2,914,900/-
Rs.110 lakh | Rs.3,546,290/- | Rs.32,223,900/-

2013-2014 Income Tax Slabs for Senior Citizens


These income tax slabs are for senior citizens in the age bracket of 60 years to 80 years. Those who have an income above Rs.5 lakh per annum have got relief, with the tax down by Rs.2,060/-.
Income | New Tax | Old Tax
Rs. 2 lakh | No tax | No tax
Rs. 5 lakh | Rs.23,690/- | Rs.25,750/-
Rs. 8 lakh | Rs.87,550/- | Rs.87,550/-
Rs. 10 lakh | Rs.1,28,750/- | Rs.1,28,750/-
Rs. 25 lakh | Rs.5,92,250/- | Rs.5,92,250/-
Rs. 50 lakh | Rs.13,64,750/- | Rs.13,64,750/-
Rs.100 lakh | Rs.29,09,750/- | Rs.29,09,750/-
Rs.110 lakh Rs.35,40,625/- Rs.32,18,750/-

2013-2014 Income Tax Slabs for Senior Citizens above 80 years


Senior citizens who are above 80 years of age don't need to pay any tax if their income is up to Rs.5 lakh per annum. Those having an income above and less than Rs.110 lakh will have the same tax slabs as the previous year. However, those who come within the income bracket of above Rs.110 lakh come a higher rate.
Income | New Tax | Old Tax
Rs. 2 lakh | No tax | No tax
Rs. 5 lakh | No tax | No tax
Rs. 8 lakh | Rs.61,800/- | Rs.61,800/-
Rs. 10 lakh | Rs.1,03,000/- | Rs.1,03,000/-
Rs. 25 lakh | Rs.5,66,500/- | Rs.5,66,500/-
Rs. 50 lakh | Rs.13,39,000/- | Rs.13,39,000/-
Rs.100 lakh | Rs.28,84,000/- | Rs.28,84,000/-
Rs.110 lakh | Rs.35,12,300/- | Rs.35,12,300/-

2013-2014 Tax on the Super Rich


Those fortunate enough to be in the bracket of the super high income bracket of above Rs.1 crore per annum, have to face the taxman in a super high way! A 10% surcharge will be levied on them for 1 year. This surcharge applies to: (a) individuals, (b) Hindu undivided families, (c) firms, (d) those entities who have a similar tax status.

Direct Taxes Code Bill


The Direct Taxes Code Bill (DTC) is a new Bill through which the Central Govt. of India aims to give a contemporary aspect to the existing tax system. What this means is that the DTC will be such that it will be in tune with international practices which are in harmony with a growing economy. At the same time, it will not be complicated but will, in fact, make the tax system much simpler.

The Finance Minister made it very clear that the DTC would not be an amendment of the 1961 Income Tax Act, but a just a new code to update the existing tax system. He also stated that presently the DTC Bill has not been fully completed as the Govt. will be considering the recommendations on the Bill made by the Parliamentary Standing Committee on Finance.

Conclusion


As can be seen by the tax slabs provided above, the salaried class has been left in the lurch. It is disappointing for them not just because of having no additional deductions. They do not get the much-hoped for increase in the tax exemption limits for important allowances like education allowance for their kids and medical reimbursement. A huge let down by the Finance Minister!


Article by Vandana
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