In today’s budget there is no major changes when it comes to tax slabs for individuals. Also Finance Ministry retained the same surcharge and educational cess. I already pointed few changes in my earlier post about “Budget 2014-15-Highlights and effect on your Finance“.
In this post I restrict my subject towards new tax slabs for FY 2014-15. They are as below.
Tax Slabs for Financial Year 2014-15 or Assessment Year 2015-16
1) Tax Slabs for Resident Individual (Below 60 Yrs of age), HUF, Association of Persons, Body of Individuals and Artificial judicial persons.
2) Tax Slabs for Resident Individual (Above 60 Years of age but below 80 Yrs of age)
3) Tax Slabs for Resident Individual (Above 80 Yrs of age)
Note-1) In all above cases if income exceeds Rs.1 Cr, surcharge of 10% of income tax is applicable. 2) Education cess at 3%.
Tax effect on Dividend received by holders-
Equity oriented-NIL and Debt oriented-Nil
Dividend Distribution Tax (Payable by Mutual Fund Companies)
Below are the current rates of DDT.
Capital Gain Tax-
- Increase in LTCG for debt funds applicable from 1st April 2014.
- STCG and LTCG will attract TDS for NRIs.
- All tax will attract 3% Education cess.
There is a big change for debt funds holding period for LTCG and Dividend Distribution Tax. Difference between old to new rate for debt fund can be calculated from below calculator which was designed by Mr.Pattu.
Security Transaction Tax
Hope above information is suffice for an individual.