Income Tax Slabs for FY 2013-14 and AY 2014-15

Income Tax Slabs for Financial Year 2013-14 and Assessment Year 2014-15.  For this period there is no change in basic tax exemption from what it was in FY 2012-13 and Assessment Year 2013-14.  However, the benefit that is available in this financial year is the tax credit of Rs.2000/- for people having an annual income upto Rs.5 lakhs.

In the new tax structure also 20,000 rupees tax exemption availability is maintained on investment in tax saving infrastructure bonds.

Even if the information is accurate, we advise you to double check with the official Income Tax website www.incometaxindia.gov.in

INCOME TAX SLABS FOR   FA (FINANCIAL YEAR) 2013-14 AND AY (ASSESSMENT YEAR) 2014-15
Income Tax Slabs for AY2014-15 for Others & Men (FY (Financial Year) 2013-14)
S. No.	Income Range	% of Tax
a	Up to Rs 2,00,000	No Tax
b	2,00,001 to 5,00,000	10%
c	5,00,001 to 10,00,000	20%
d	Above 10,00,000	30%
Income Tax Slabs for AY (Assessment Year) 2014-15 for Resident Senior Citizens above 60 years (FY(Financial Year) 2013-14)
S. No.	Income Range	% of Tax
a	Up to Rs 2,50,000	No tax
b	2,50,001 to 5,00,000	10%
c	5,00,001 to 10,00,000	20%
d	Above 10,00,000	30%
Income Tax Slabs for AY (Assessment Year) 2014-15 for Resident Senior Citizens above 80 years (FY(Financial Year) 2013-14)
S. No.	Income Range	% of Tax
a	Up to Rs 5,00,000	No tax
b	5,00,001 to 10,00,000	20%
c	Above 10,00,000	30%
New Income Tax Slabs for AY(Assessment Year) 2014-15 for Resident Women (below 60 years) (FY (Financial Year)2013-14)
1	Up to Rs 2,00,000	No tax
2	2,00,001 to 5,00,000	10%
3	5,00,001 to 10,00,000	20%
4	Above 10,00,000	30%

 How to get exemption under IT Act

Even after getting the registration, the NGOs need to fulfill the following to get exemption from Income Tax:

       * The organisation should use most of its funds for the welfare of the people and also for the 

          charitable purposes.

        * The organisation needs to get its accounts audited and  a  Form 10-B should be filled in by a C.A.            if the total income is  more than 50000/- (Fifty thousand rupees) in an year.

        * The organisation needs to file its I.T. returns using Form 3-A (see forms section) before 31st of          August.

        * In case the organisation's income is more than  Rs.50000/- and is registered under co-operative         Society they need to file its returns before 31st October.

12 A Registration - Income Tax

12A. Conditions as to registration of trusts, etc.

The provisions of section 11 and section 12 shall not apply in relation to the income of any trust or institution unless the following conditions are fulfilled, namely:-

(a) the person in receipt of the income has made an application for registration of the trust or institution in the prescribed form and in the prescribed manner to the Commissioner before the 1st day of July, 1973, or before the expiry of a period of one year from the date of the creation of the trust or the establishment of the institution, whichever is later and such trust or institution is registered under section 12AA:

Provided that where an application for registration of the trust or institution is made after the expiry of the period aforesaid, the provisions of section 11 and section 12 shall apply in relation to the income of such trust or institution, -

(i) from the date of the creation of the trust or the establishment of the institution if the Commissioner is, for reasons to be recorded in writing, satisfied that the person in receipt of the income was prevented from making the application before the expiry of the period aforesaid for sufficient reasons;

(ii) from the 1st day of the financial year in which the application is made, if the Commissioner is not so satisfied ;

(b) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of section 11 and section 12exceeds fifty thousand rupees in any previous year, the accounts of the trust or institution for that year have been audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and the person in receipt of the income furnishes along with the return of income for the relevant assessment year the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed. (source Income Tax Deptt, Govt of India)

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Income Tax Registration

Income Tax Registration:    To avail Income Tax exemption for not for profit organizations, the NGOs need to apply for registration under 12A of Income Tax Act.  If the organization is not registered, then they need to pay tax on the un-utilized money of the income they receive during the year. (all the donations the organizations receive treated as income, unless a donor gives money for organization’s corpus fund –At times donors gives money to NGOs towards corpus fund – such funds received by an NGO are exempt from Income Tax – however, the donor need to send a document to the NGO clearly mentioning the purpose of the grant is for Corpus.

How to Apply: Organisations seeking registration will have to apply to the Income Tax Commissioner,  using form 10-A Application for registration.

*Two sets of the following documents needs to be attached alongwith application form.        

* Bye-laws, Memorandum of Association (attested copies)

* Audited statement of accounts for the last two years (if the organization is less than two years old, then you can send at  least one year audited statement of accounts.

The application needs to be submitted to the Income Tax Commissioner of your locality.   After reviewing your application, the Income tax authorities may ask you for further information or/and also may ask you to show the originals.

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