In the modern times, income tax is an annual tax on income. The Indian IncomeTax Act (Section 4) provides that in respect of the total income of the previous year of every person, income tax shall be charged for the corresponding assessment year at the rates laid down by the Finance Act for that assessment year. Section 14 of the Income Tax Act further provides that for the purpose of charge of income tax and computation of total income all income shall be classified under the following heads of income: salaries, income from house property, profits and gains of business or profession, capital gains, income from other sources.

The total income from all the above heads of income is calculated in accordance with the provisions of the Act as they stand on the first day of April of any assessment year. The Income Tax Department is responsible for all activities related to the taxation process.

The Income Tax Department is governed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue under the Ministry of Finance, Government of India.

•  Individuals, Hindu Undivided Families, AOPs, BOIs

  • For any other resident individual (born on or after April 1, 1954), any non-resident individual, every Hindu Undivided Family (HUF), Association of Persons (AOP) or a Body of Individuals (BOI),artificial juridical person following are the Income Tax Rates.

    Assessment Year 2014-15

    Net income range	Income-tax rates	Surcharge	Edu cess	Sec and higher education cess
    Up to Rs.2,00,000	Nil	Nil	Nil	Nil
    Rs.2,00,000 – Rs.5,00,000	10% of (total income minus Rs.2,00,000)	Nil	2% of income-tax	1% of income-tax
    Rs.5,00,000 – Rs.10,00,000	Rs.30,000 + 20% of (total income minus Rs. 5,00,000)	Nil	2% of income-tax	1% of income-tax
    Rs.10,00,000 – Rs.1,00,00,000	Rs.1,30,000 + 30% of (total income minus Rs. 10,00,000)	Nil	2% of income-tax	1% of income-tax
    Above Rs.1,00,00,000	Rs.28,30,000 + 30% of (total income minus Rs. 1,00,00,000)	10% of income-tax	2% of income-tax and surcharge	1% of income-tax and surcharge

•  Senior Citizen

  • For a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year, i.e., born during April 1, 1934 and March 31, 1954

    Assessment Year 2014-15

    Net income range	Income-tax rates	Surcharge	Edu cess	Sec and higher education cess
    Up to Rs.2,50,000	Nil	Nil	Nil	Nil
    Rs.2,50,000 – Rs.5,00,000	10% of (total income minus Rs.2,50,000)	Nil	2% of income-tax	1% of income-tax
    Rs.5,00,000 – Rs.10,00,000	Rs.25,000 + 20% of (total income minus Rs. 5,00,000)	Nil	2% of income-tax	1% of income-tax
    Rs.10,00,000 – Rs.1,00,00,000	Rs.1,25,000 + 30% of (total income minus Rs. 10,00,000)	Nil	2% of income-tax	1% of income-tax
    Above Rs.1,00,00,000	Rs.28,25,000 + 30% of (total income minus Rs.1,00,00,000)	10% of income-tax	2% of income-tax and surcharge	1% of income-tax and surcharge

•  Super Senior Citizen

  • For a resident super senior citizen (who is 80 years or more at any time during the previous year, i.e., born before April 1, 1934)

    Assessment Year 2014-15

    Net income range	Income-tax rates	Surcharge	Edu cess	Sec and higher education cess
    Up to Rs.5,00,000	Nil	Nil	Nil	Nil
    Rs.5,00,000 – Rs.10,00,000	20% of (total income minus Rs.5,00,000)	Nil	2% of income-tax	1% of income-tax
    Rs.10,00,000 – Rs.1,00,00,000	Rs.1,00,000 + 30% of (total income minus Rs. 10,00,000)	Nil	2% of income-tax	1% of income-tax
    Above Rs.1,00,00,000	Rs.28,00,000 + 30% of (total income minus Rs. 1,00,00,000)	10% of income-tax	2% of income-tax and surcharge	1% of income-tax and surcharge

•  Co-operative Societies

  • Assessment year 2014-15

    Co-operative societies - The following rates are applicable to a Co-operative Society for the assessment years 2013-14 and 2014-15.

    Assessment year 2014-15

    Net income range	Income-tax rates
    Up to Rs.10,000	10%
    Rs.10,000 - Rs.20,000	20%
    Rs.20,000 and above	30%

•  Firms

  • Assessment year 2014-15 - External website that opens in a new window

    A firm is taxable at the rate of 30 per cent for the assessment years 2013-14 and 2014-15.

•  Specified Income Tax rates for other income

  • Check the rates of other taxable income such as: short-term capital gains, long-term capital gains, etc. for the Assessment year 2014-15.

As per Taxation Rules, it is mandatory for an earning individual/entity to file a return irrespective of the fact that tax has been deducted at source by his/her employer or not, and whether he/she is eligible for a refund or not.

Note: The CBDT has, vide notification dated 1-05-2013, made E-filing of Return compulsory for Assessment Year 2013-14 for persons having total assessable income exceeding Five lakh rupees.

The CBDT vide its earlier notifications had exempted salaried employees having total income upto Rs.5 lakhs including income from other sources upto Rs.10,000/- from the requirement of filing return of income for assessment year 2011-12 and 2012-13 respectively. The exemption was available only for the assessment year 2011-12 and 2012-13. The exemption was giving considering 'paper filing of returns' and their 'processing through manual entry' on system.

To file Income Tax Returns (ITRs), one needs to submit the ITRs belonging to the particular assessment year. The ITR forms to file income returns for AY 2014-15 are as follows:

Note:- All Forms are in PDF

Download all ITR forms and Instructions - External website that opens in a new window

Further instructions and forms for previous years can be found here - External website that opens in a new window.

Learn the basics of TDS - External website that opens in a new window