New Tax slabs for FY 2014-15 (AY 2015-16)

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.

Tax Slabs 2014-15-Individual

2) Tax Slabs for Resident Individual (Above 60 Years of age but below 80 Yrs of age)

Tax Slabs 2014-15-Individual Senior

3) Tax Slabs for Resident Individual (Above 80 Yrs of age)

Tax Slabs 2014-15-Individual Super Senior

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.

Dividend Distribution Tax-2014-15

Capital Gain Tax-

Capital Gain Tax-2014-15

  • 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

STT Rates 2014-15

Hope above information is suffice for an individual.

58 Responses

  1. I’ve taken a consolidate view of my icicidirect account.
    It declares some 7k as LTCG while some 3k as stcg.

    I’m filing ITR-1 and wondering how to put this income there.
    – When I add it to other sources, the tax calculator asks to pay 30% rather 15%
    – And LTCG is also getting taxed which ideally should be tax free.

    Can you help and direct me where to fill this income, so that I can show it and pay right tax percent.

  2. I have query about paying tax related to short term capital gain.

    I am a salaried person and also in taxable bracket for my salary.

    for salary my tax is already deducted and submitted by my employer.

    I have invested some sort of money in stock market and got the

    long term capital gain [-248 (loss)]

    short term capital gain

    Delivery [+11450 (gain) -457(loss) = 10993( gain)]

    Intraday [+758 (gain) -244(loss) = 514 ( gain)]

    *STT are already paid by brokerage house for all the above transaction.

    my question is how much I need to pay tax for current financial year.

    Is it 10% of overall short term capital gain(means 10% of 11507)?

    and How to pay tax online?

    If I will go to this site

    which CHALLAN I need to select?

    and after that which option from Tax Applicable* and Type Of Payment* should be selected?

  3. Hi,
    Appreciate your efforts.

    I have worked in a company for 6 months in this FY and then working for myself without any income. Please help me with following questions.
    1. Can I claim all benefits like HRA, conveyance etc for the entire FY?
    2. The company which I worked in India (its not based in india and the shares are not traded in india) allots some shares on a monthly basis (we pay for 50% and the company pays 50%). These are accumulated over the years. I have sold all of these shares. Any tax liability on this amount? If so, at what rate?
    3. Since I was not working or there is no income, can I claim any benefit?
    4. I have some short term capital gains from shares. What is the tax rate on this? Is it 15% or at normal rate? Also, I have losses from previous years (both long term and short term from shares). I have declared them in returns but only for those individual years (ex. losses are declared in 2012-13 but not repeated them again in 2013-14. In 2013-14, only fresh losses were reported). For example, I have a loss of 10000 in 2012-13, and 10000 in 2013-14. What should I report in 2013-14? 10000 or 20000. In my case, only 10000 reported in 2013-14, the other 10000 is in 2012-13. Now, can I trade off 20000 with current year gains?

      1. Thanks Basavaraj. For the second point, is it treated similar to stocks held in India (like STCG/LTCG)? These shares are accumulated every month for the last couple of years. So, shares accumulated in the last 12 months fall into STCG and the rest in LTCG?

          1. Thanks a lot. So, I will classify them as LTCG and STCG. All this while I was adding it to my regular income and calculating tax at normal rate.

  4. I have short term capital gains and losses arising out of
    1) Equity – direct sale / purchase (Loss)
    2) Debt fund (FMP – 368 days) (profit)
    3) Gold Etf (holding for 1.5yrs) (loss)

    I understand these are liable for differant rate of taxes (15%, as per tax slab – 30%).

    Can I offset gains and losses here? What tax rate I apply to the adjusted figure.

  5. can you suggest me to get the HRA benifit as my company is not accepting Rent Receipts as rent paid proofs. they are asking for Rental agreement, which my house owner is not willing to give.

    How to show in e filing of Tax returns the amount paid as rent if Company is not considering???

  6. sir ,
    I have small shop , i get loan 3,00,000 for home . That time i have submitd IT returns ,
    i have income 120000 pa , my tax adviser says , u have to pay income tax for every year . other wise u get I T noties
    if i want to submit I T returns in which month i submit for 2014 – 2015

    plese give me advise i dont have any knowedge on income tax

  7. Now that in FY 2014-15, the short term for debt funds have been redefined as 60 and <80) the taxable income is <Rs 3,00,000, will the CGT be nil?
    Please clarify.

      1. Even I can’t understand the text that is appearing. It seems the same has been chopped off at points. My original text was “Now that in FY 2014-15, the short term for debt funds have been redefined as less than 36 months, I have a query regarding Short term Capital Gains Tax applicable. What is the definition of ‘Tax Slab’ shown above? Is it the slab in which my Income tax rate falls? If I am in less than Rs 3,00,000 tax bracket and 61 years old will the CGT be nil?

        1. Anjan-If at any point of time your capital gains falls less than the minimum tax slabs then they are free whether your age is 40 Yrs or whatever. But if the limit crossed then you need to pay the tax.

  8. What is the Dividend Distribution Tax rate for private limited companies in FY2014-15 and date from which it is implemented?

    1. Hello Mr. A.K Singh,

      Are you a partner of Basavaraj Tonagatti. If we have any question, we can directly ask/contact Mr. BASU, this blog owner.

      Thanks for your suggestion.


      1. Pradipta-For your information neither Mr.Singh is partner nor I am promoting his business. I approved his comment only to help few who can directly contact him for getting help while filing. Also I am open to all opportunity of good service and knowledge sharing from all. In fact I learnt a lot from comments readers ask than what I learnt after completion of CFP. So let us learn and grow and if Mr.Singh truely providing valuable service then why we need to resist?

  9. Dear Sir,
    Please suggest!
    Where the assesse have only loong term capital gain and no any other income.
    LTCG is arise and amount is below exepmtion limit.
    Does the capital gain will be paid OR Not.
    please suggest the section also for the same.

    Waiting for your reply.

    Mahendra Singh

  10. Hi Basavaraj , it is worth adding a note to the Capital Gains Tax table that for NRIs, basic exemption limit cannot be applied to Capital Gains unlike residents. So the entire capital gains is always subject to Tax.

    1. Santosh-AOP stands for Association of Persons-Two or more persons join together for common purpose in view to earn income. Here again persons means individual or companies. BOI stands for Body of individuals. In case of BOI only individuals are allowed but not companies. So if two more individuals, HUF, company or firm join together then they treated as AOI. If two or more individuals join together then they are called BOI.

  11. I have two form 16, Capital gain(both long and short term from stocks), Income from other source(interest from SA). I was going for online return filling. Please suggest the ITR and process for Capital Gain.

  12. Dear Sir, I had purchased a house in August 08 and sold it in May 13 booking a LTCG. I have booked a flat in April 14 but agreement will be done in August 14. How to show the transactions in ITR this year while filing e return. I observed there is no column to show it. When LTCG is to be shown in ITR. Please guide.

    1. Umesh-You need to show the details to your CA as the gained LTCG is again re-invested in buying one more property but with paying part payment. So better to consult expert and revolve your issue.

  13. Hi Basu,

    Regular follower of your site, for any financial related information I will refer ur blog only very Informative.
    I need one clarification in IT Returns.
    I have shifted company in february this year, Already in my old company they have deducted professional Tax twice( August 2013 and Jan2014).
    In february 2014 my new company deducted professional Tax again, when I checked with them, they told need to put form 16 of 2 companies to get that extra deducted amount in IT returns.
    Could you please help me how can i get reimburse the extra deducted amount when i am filing IT Returns
    Where I have to mention( i mean in which section ) in ITR form
    Please help me in this.


      1. They are deducting professional Tax half yearly (old company in Julyand January)
        New Company ( August and February)
        I have joined in February

          1. Filing IT Returns Online in IncomeTax efiling website
            Where can I mention , I mean in which section in IT Returns.
            Professional Tax will come under which Category

  14. The out go of income tax from our earnings is nothing/negligible when compared to the service/vat/sales taxes, excise duties, professional/entertainment taxes, education cess, surcharges, gift tax, wealth tax, toll tax, etc innumerable taxes.

  15. Respected Sir,

    I am a Sr. Accountant in a Pvt. Ltd. Company in Kolkata. I requested to you please send in future in any change in Account,Excise etc.

    With Regards,

    Swapan Das Chowdhury

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