This document discusses income tax in India. It defines income tax as a direct tax levied on the incomes of individuals, Hindu Undivided Families (HUFs), unregistered firms, and other associations of people. It was passed as an act in 1961 and came into effect in 1962. The document then provides the income tax slab rates for the 2013-2014 assessment year, including different rates for individuals of different ages and genders. It also defines various income tax related terms and provides an example computation of total income and tax liability for an individual named M. Niranjan for the 2013-2014 assessment year.

1. INCOME TAX

2. TAX
• A fee charged (“levied”) by a government on a product,
income,or activity.
• The purpose of taxation is to finance government expenditure.
TYPES OF TAXES
DIRECT TAX INDIRECT TAX
EXAMPLES: EXAMPLES:
1. INCOME TAX 1.EXCISE DUTY
2.WEALTH TAX 2. CUSTOMS DUTY
3.CORPORARE TAX 3.SALES TAX
4.GIFT TAX

3. INCOME TAX
• Income tax is one of the direct tax and it is
levied on the incomes of individuals, HUF,
unregistered firms and other associations of
peoples.
• Income tax act was passed in Sep 1961 and
came into force in 1st April 1962.

4. INCOME TAX RELATED TERMS
• ASSESSEE.
• PREVIOUS YEAR.
• ASSESSMENT YEAR.
• PERSON.
• GROSS TOTAL INCOME.
• TOTAL INCOME.

5. INCOME TAX SLAB RATES (APPLICABLE
FOR ASSESSMENT YEAR 2013 – 2014).
The new and revised income tax slabs and rates applicable for the financial year (FY) 2012-13 and
assessment year (AY) 2013-14 are mentioned below:
FOR INDIVIDUAL MALE,AGE LESS THAN 60 YEARS
• Up to 200000 : Nil
• 200001-500000 : 10%
• 500001-1000000 : 20%
• 1000001 & above : 30%
FOR INDIVIDUAL FEMALE,AGE LESS 60 YEARS
• Up to 200000 : Nil
• 200001-500000 : 10%
• 500001-1000000 : 20%
• 1000001 & above : 30%
FOR INDIVIDUAL, AGE MORE THAN 60 YEARS ( SENIOR CITIZEN)
• Up to 250000 : Nil
• 250001-500000 : 10%
• 500001-1000000 : 20%
• 1000001 & above : 30%

6. HEADS OF INCOME
1. Income from Salary.
2. Income from House property.
3. Income from Business / Profession.
4. Income from Capital Gains.
5. Income from Other Sources.

7. COMPUTATION OF
TOTAL INCOME OF M. NIRANJAN FOR A.Y. 2013-14
PARTICULARS AMOUNT AMOUNT
I. Income from Salary (RS) (RS)
Basic Salary (Rs.7,500 x 12) 90,000
II. Income from house property
Gross Annual Value (GAV) 27,000
Less : Municipal taxes paid 2,000
Net Annual Value (NAV) 25,000
Less : Deduction under section 24 (@ 30% of Rs. 7500 17500
25,000)
III. Income from profession
Net profit 366950
IV. Income from other sources
Interest on income-tax refund 450
Winnings from the game show on T.V. 50000 50450
Gross Total Income 5,24,900

8. Gross Total Income 5,24,900
Less:
Deductions under Chapter VI A
(a) Deduction under section 80C
Tuition fee paid to university for education 1,00,000
(b) Deduction under section 80D
Medical insurance premium
(maximum allowable upto Rs.15,000) 15,000
(c) Deduction under section 80E
Interest on loan taken for higher education is deductible 55,000 170000
Total income 3,54,900
So the total income of DR. NIRNJAN is
RS.3,54,900

9. COMPUTATION OF TAX LIABILITY OF DR.NIRANJAN
PARTICULARS (%) AMOUNT
(RS)
Total income =RS. 3,54,900
Upto RS.200000 NIL NIL
NEXT RS 200001-500000 10 15,490
(200001-354900)=RS.154900
Add: Education cess @ 2% 309.8
Add: Secondary and higher education cess @ 1% 154.9
TAX PAYABLE (17618.8)
ROUNDED OFF 17,620
Thus ,The Total TAX LIABILITY of M.NIRANJAN
for A.Y 2013-2014 is RS.17620