This document summarizes the key changes to India's personal income tax rules in the 2014-15 budget. It notes that the basic income tax exemption limit has been raised to Rs. 2.5 lakh for individuals under age 60 and Rs. 3 lakh for seniors aged 60-80. Deductions for interest on home loans and investments under section 80C have also been increased. The maximum combined annual tax savings for salaried employees is estimated to be Rs. 50,985 for those with a taxable income over Rs. 1 crore.

1. ISO 27001 (ISMS) AND ISO 9001 (QMS ) CERTIFIED
BUDGET 2014-15: PERSONAL TAXATION
ALERT
Implications on Taxation, Savings
for
Salaried Employees
(A detailed Ascent Report)

2. ISO 27001 (ISMS) AND ISO 9001 (QMS ) CERTIFIED
KEY HIGHLIGHTS:
 Income Tax exemption limit raised for all individuals (Male/Female) below the age of 60 years from Rs 2.00 lakh to Rs 2.50 lakh
 The rebate upto Rs 2000 available under Section 87A for individuals whose taxable income is less or equal to Rs 5.00 lakh continues
 The basic exemption limit for senior citizens ( aged 60 Yrs & above ) has been raised from Rs 2.50 lakh to Rs 3.00 lakh, giving an
additional relief of Rs 5000 to every senior citizen tax payer in this category
 Deduction on account of Interest paid on loan take for self-occupied house property has been increased from Rs 1.50 lakh
to Rs 2.00 lakh
 Investment under the PPF scheme ( which is part of 80C ) increased from Rs 1.00 lakh to Rs 1.50 lakh.
 Investment limit under section 80C( including PPF ) has also been increased from Rs 1.00 lakh to Rs 1.50 lakh

3. ISO 27001 (ISMS) AND ISO 9001 (QMS ) CERTIFIED
KEY HIGHLIGHTS (Continued)…
 Education cess and Secondary/Higher Education cess shall continue to be levied at the rate of 2% and 1% respectively
 There has been no change in the rates of surcharge. Surcharge will be applicable @ 10% for all individuals earning taxable income in
excess of Rs. 1 crore.
 Super senior citizen exemption limit continues to be Rs 5.00 Lakh
 Deduction in respect of investment made under an equity savings scheme under Section 80 CCG providing additional exemption of
Rs. 25000 in excess of Rs 1.50 lakh under Section 80C to continue.


4. ISO 27001 (ISMS) AND ISO 9001 (QMS ) CERTIFIED
FOR THE SALARIED CLASS: ( A Comparison Table)
Income tax slab for FY 13-14 Income tax slab for FY 14-15
Income Range % Tax Income Range % Tax
Male / Female individual below 60 years
Up to Rs.2,00,000 No Tax / Exempted Up to Rs.2,50,000 No Tax / Exempted
2,00,001 to 5,00,000 10% 2,50,001 to 5,00,000 10%
5,00,001 to 10,00,000 20% 5,00,001 to 10,00,000 20%
Above 10,00,000 30% Above 10,00,000 30%
Senior Citizens 60 years and below 80 years
Up to Rs. 2,50,000 No Tax / Exempted Up to Rs. 3,00,000 No Tax / Exempted
2,50,001 to 5,00,000 10% 3,00,001 to 5,00,000 10%
5,00,001 to 10,00,000 20% 5,00,001 to 10,00,000 20%
Above 10,00,000 30% Above 10,00,000 30%
Senior Citizens 80 years and above
Up to Rs.5,00,000 No Tax / Exempted Up to Rs.5,00,000 No Tax / Exempted
5,00,001 to 10,00,000 20% 5,00,001 to 10,00,000 20%
Above 10,00,000 30% Above 10,00,000 30%

5. ISO 27001 (ISMS) AND ISO 9001 (QMS ) CERTIFIED
There is a major change in the exemption limit for all
employees, who would get benefited from this budget.
The basic exemption limit refers to the amount that is not taxed
for the individual. Income earned in excess of the basic
exemption limit starts getting taxed at specified rates.
A higher basic exemption limit means that the individual will be
able to get a higher amount of money in his hands.
The maximum benefit for employees below 60 years is Rs.
15450 (@ 30.6%) due to the increase in basic exemption limit.
For employees having 1 crore or more taxable income, the
increase will be Rs. 16995.
The increase in the maximum deduction in respect of interest
on home loan for self-occupied property from Rs. 1.5 lakhs to
2.00 lakhs will benefit the employee to an extent of Rs. 15450 (
@ 30.9% ). For employees above 1 crore taxable income, the
savings would be Rs 16995. (@ 33.99 %)
The increase in the maximum deduction under Section 80C of
Rs 50000 ( from 1 lakh to 1.5 lakh ) will lead to a maximum
savings of Rs. 15450 ( @ 30.9% ). For employees above 1 crore
taxable income, the savings would be Rs 16995. (@ 33.99 %)
Since, these exemptions / deductions will be have an impact to
the income that is actually earned at the highest tax bracket
applicable for the employee, assuming that an employee benefits
from both exemption as well housing loan interest / 80C limit, the
maximum tax savings put together ( on 150000) per annum will
be Rs. 15450 ( 10.3%), Rs. 30900 ( 20.6% ), Rs. 46350 ( 30.9%),
Rs 50985 ( 33.99% ).
The above calculations are computed taking cess as well into
consideration.
Happy Savings!!