For persons up to 60 years
In the general category- person up to 60 years of age- tax will be applicable if income is more than Rs. 2.5 lakh. For income of Rs. 0-Rs. 2.5 lakh no tax will be applicable. A tax of only 5 per cent will be applicable if income is between Rs. 2.5-5 lakh.
Further, the income tax rebate of up to Rs. 5,000 which was earlier given for taxable income up to Rs. 5 lakh, has been reduced to Rs. 2,500 and it will be available for taxable income of up to Rs. 3.5 lakh. It means if an individual has a taxable income of Rs. 3 lakh, his net tax liability will be zero (tax @5% on Rs. 1 lakh is Rs. 2,500 minus rebate of Rs. 2,500).
Income Tax
Up to Rs. 2.5 lakh Nil
Rs. 2,50,001-Rs. 5 lakh 5%
Rs. 500,001-Rs. 10 lakh 20%
Above Rs. 10 lakh 30%
For income between Rs. 5-10 lakh, a tax of 20 per cent will be applicable and for income above Rs. 10 lakh a tax rate of 30 per cent will be applicable. However, people having taxable income of more than Rs. 50 lakh but less than Rs. 1 crore, a new surcharge of 10 per cent will be imposed along with the a tax of 30 per cent. For example, if an individual has a taxable income of Rs. 55 lakh, his tax liability will now increase from Rs. 15.19 lakh earlier to Rs. 16.57 lakh now (income tax of Rs. 14.62 lakh plus surcharge of Rs. 1.46 lakh and education & higher education cess of Rs. 48,263).
If taxable income is more than Rs. 1 crore, then the surcharge will increase to 15 per cent of tax plus education and higher education cess of 3 per cent. However, on taxable incomes where surcharges are applicable, tax payers get the benefit of marginal relief,
For persons between 60-80 years
For senior citizens falling in the tax bracket of Rs. 0 to Rs. 3 lakh, no tax will be applicable. For income between Rs. 3-5 lakh, a tax rate of 5 per cent will be applicable. The tax rate and surcharge will be same as general category for income between Rs. 5-10 lakh and above Rs. 10 lakh.
Income Tax
Up to Rs. 3 lakh Nil
Rs. 3,00,001-Rs. 5 lakh 5%
Rs. 5,00,001-Rs. 10 lakh 20%
Above Rs. 10 lakh 30%
For persons above 80 years age
For people aged above 80 years no tax will be applicable for income up to Rs. 5 lakh. A tax rate of 20 per cent and 30 per cent will be applicable for income between Rs. 5 lakh and Rs. 10 lakh and Rs. 10 lakh and above respectively as in case of general category.
Income Tax
Up to Rs. 5 lakh Nil
Rs. 5,00,001-Rs. 10 lakh 20%
Above Rs. 10 lakh 30%
