7% DA RISE CONFIRMED FROM JULY-2014 FOR CENTRAL GOVT. EMPLOYEES : SITUATION AFTER DECLARATION OF AICPIN FOR JUNE 2014

The AICPIN  for the month of JUNE 2014 is declared by central government of India . There is increase by TWO points in AICPIN and pegged at 246 points Thus with present scenario, the quantum of DA rise w.e.f. 1-7-2014 i.e. July 2014 is CONFIRMED AS 7%.


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Expected D.A. rise w.e.f. January 2015 (1-1-2015)

For details, click the following link:

http://globalemployeesforum.blogspot.in/2014/08/expected-da-rise-from-january-2015-1-1_30.html

INCOME TAX RATES FOR FINANCIAL YEAR 2014-15 (Assessment year 2015-16)

.  1.          Individual resident aged below 60 years 

                          (i.e. born on or after 1st April 1955) 

                   or any NRI / HUF / AOP / BOI / AJP*

Income Tax :

	Income Slabs	Tax Rates
i.	Where the total income does not exceed Rs. 2,50,000/-.	NIL
ii.	Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.	10% of amount by which the total income exceeds Rs. 2,50,000/-.  Less** : Tax Credit - 10% of taxable income upto a maximum of Rs. 2000/-.
iii.	Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.	Rs. 25,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iv.	Where the total income exceeds Rs. 10,00,000/-.	Rs. 125,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

** Applicable in case of Resident Individuals only.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

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2.                           Individual resident who is of the age of 

          60 years or more but below the age of 

          80 years at any time during the

.                   previous year (i.e. born on or after 1st April 1934 but before 1st April 1954)

Income Tax :

	Income Slabs	Tax Rates
i.	Where the total income does not exceed Rs. 3,00,000/-.	NIL
ii.	Where the total income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-	10% of the amount by which the total income exceeds Rs. 3,00,000/-. Less : Tax Credit - 10% of taxable income upto a maximum of Rs. 2000/-.
iii.	Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-	Rs. 20,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iv.	Where the total income exceeds Rs. 10,00,000/-	Rs. 120,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

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  3.   Individual resident who is of the age of 80 years or more

          at any time during the previous year 
      (i.e. born before 1st April 1934)

Income Tax :

	Income Slabs	Tax Rates
i.	Where the total income does not exceed Rs. 5,00,000/-.	NIL
ii.	Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-	20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iii.	Where the total income exceeds Rs. 10,00,000/-	Rs. 100,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Surcharge : 10% of the Income Tax, where total taxable income is more

 than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

EXPECTED DA RISE FROM JULY-2014 FOR CENTRAL GOVT. EMPLOYEES : SITUATION AFTER DECLARATION OF AICPIN FOR MAY 2014

FOR LATEST POSITION. PLEASE CLICK THE FOLLOWING LINK:
http://globalemployeesforum.blogspot.in/2014/07/7-da-rise-confirmed-from-july-2014-for.html


The AICPIN  for the month of MAY 2014 is declared by central government of India . There is increase by TWO points in AICPIN and pegged at 244 points Thus with present scenario, the estimation of DA rise w.e.f. 1-7-2014 i.e. July 2014 is further reviewed with the help of following cases:

CASE-I:  There is no change in AICPIN for the month of JUNE 2014.  

         Let us assume that for June 2014, the AICPIN neither rises nor declines and remains constant at 244 points for June 204.  In this case, the DA rise would be 7% w.e.f. 1-7-2014.

CASE-II:  The AICPIN increases by one point to 12 poins  for the month of   JUNE 2014.  

 In this case, the DA rise would remain at 7% w.e.f. 1-7-2014.

CASE-III:  The AICPIN increases by Thitreen (13) points the month of JUNE 2014. (which is more unlikely)  

 In this case, the DA rise would be8% w.e.f. 1-7-2014. But practically, this much steep rise in AICPIN in a single month is most unlikely.

CASE-IV:  The AICPIN declines  by ONE point for the month of JUNE 2014.  

In this case, the DA rise would be 7% w.e.f. 1-7-2014.

CASE-V:  The AICPIN declines  by TWO points  for the month of JUNE 2014 .  

 In this case, the DA rise would be 6% w.e.f. 1-7-2014.

CONCLUSION:  By analysing above different situations, we can conclude that minimum DA rise may be 6% and maximum 7% w.e.f. July 2014. The maximum possibility is 7% rise. IT IS VERY DIFFICULT TO REACH 8% RISE.  The final position would be intimated after declaration of AICPIN for the month ofJune 2014, . However  from present scenerio, 7% DA rise is most likely w.e.f. July 2014.