Income Tax Rates - Finance Act, 2018

The following are the income tax rates applicable for various types of taxpayers under the Finance Act, 2018. Check out the income tax calculator for checking income tax payable.

Individual, HUF, BOI, AOP

Taxable Income	Male (below 60 years)	Female (below 60 years)
Basic exemption	Rs.2,50,000	Rs.2,50,000
Rs.2,50,001 - Rs.5,00,000	5%	5%
Rs.5,00,00 - Rs.1,00,00,000	Rs.12,5000 + 20%	Rs.12,5000 + 20%
Over Rs.1,00,00,000	Rs.1,12,500 + 30%	Rs.1,12,500 + 30%

Senior Citizens (above 60 years)

Taxable Income	Senior Citizens
Basic exemption	Rs. 3,00,000
Rs.2,50,001 - Rs.5,00,000	5%
Rs.5,00,00 - Rs.1,00,00,000	10,000 + 20%
Over Rs.1,00,00,000	1,10,000 + 30%

Super Seniors Citizens (above 80 years)

Taxable Income	Senior Citizens
Basic exemption	Rs. 5,00,000
Rs.2,50,001 - Rs.5,00,000	Nil
Rs.5,00,000 - Rs.10,00,000	20%
Over Rs.10,00,000	1,00,000 + 30%

In addition to the income tax, a surcharge of 10 % of tax is imposed for income between 50 lakhs and one crore and 15 % for income that exceeds one crore. The health and education cess at the rate of 4% shall be added on to the aggregate of income tax and surcharge.

Co-operative Society

Taxable Income	Tax
Rs.10,000 or below	10% of income
Rs.10,000 - Rs.20,000	Rs.1000 + 20%
Over Rs.20,000	3,000 + 30%

If the income exceeds one crore, a surcharge of 12 % on tax is computed. The health and education cess at the rate of 4% shall be added on to the aggregate of income tax and surcharge Taxpayers should note that proprietorship firms are taxed as individuals under the Income Tax Act.

Partnership Firm

The partnership firm is charged a tax of 30% on its income. If the income exceeds one crore, a surcharge of 12 % on tax is computed. The health and education cess at the rate of 4% shall be added on to the aggregate of income tax and surcharge The amount is further increased by adding secondary and higher education cess at the rate of 1%.

Local Authority

The taxable income of the local authority is liable for a tax of 30%. A surcharge of 12% of tax is levied if the income exceeds one crore. The health and education cess at the rate of 4% shall be added on to the aggregate of income tax and surcharge

Domestic Company

If the total turnover during the last financial year confines to 250 crores, a tax amount of 25% of the income is payable. If the revenue crosses 250 crores, then it is 30% tax on taxable income. Surcharge of 7% tax should be paid if the total income exceeds one crore. Surcharge of 12% tax should be paid if the total income exceeds ten crores. The health and education cess at the rate of 4% shall be added on to the aggregate of income tax and surcharge

Foreign Company

It is 40% or 50% tax on taxable income for companies other than domestic companies. Surcharge of 2% tax should be paid if the total income exceeds one crore. Surcharge of 5% tax should be paid if the total income exceeds ten crores. The health and education cess at the rate of 4% shall be added on to the aggregate of income tax and surcharge.