A look at the Income Tax slabs for FY 2014-15 after Union Budget 2014

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A look at the Income Tax slabs for FY 2014-15 after Union Budget 2014
Finance Minister Arun Jaitley in his maiden Budget raised the tax exemption limit to Rs 2.5 lakhs for individuals and to Rs 3 lakhs for senior citizens. Accordingly, the revised tax slabs would be as follows:

Income Rs 0 - Rs 2.5 lakhs: No income tax payable

Income Rs 2.5 - 5 lakhs: 10% tax payable, plus education cess.

Income Rs 5- 10 Lakhs: 20% tax payable, plus education cess

Income Rs 10 lakhs and above: 30% tax payable, plus education cess.

SEC 80C limits raised

Apart from the above charges payable the Finance Minister also increased the exemption limit under SEC 80C of the Income Tax Act from Rs 1 lakh to Rs 1.5 lakh. Thus individuals can now invest in tax saving instruments like Insurance premium, PPF, EPF, ULIPS to the extent of Rs 1.5 lakh, in place of the Rs 1 lakh earlier

Interest on housing loans raised

The interest on housing loans paid has also been raised to Rs 2 lakh from the earlier Rs 1.5 lakh. Hence, an extra benefit of Rs 50,000. However, to avail of the benefits all of the Rs 2 lakh should have been paid as interest on housing loan.

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