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.

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Frequently Asked Questions

Common questions about Income Tax Rates 2018: Individual & Corporate Tax Details.

The basic exemption limit for individual taxpayers (male or female) below 60 years of age is Rs. 2,50,000. Income above this limit attracts income tax as per the applicable tax slabs.

For senior citizens (aged 60 years or above), the basic exemption limit is Rs. 3,00,000. Income between Rs. 2,50,001 and Rs. 5,00,000 is taxed at 5%, while income between Rs. 5,00,001 and Rs. 1,00,00,000 is taxed at Rs. 10,000 plus 20% of the income exceeding Rs. 5,00,000. Income above Rs. 1,00,00,000 is taxed at Rs. 1,10,000 plus 30% of the income exceeding Rs. 1,00,00,000.

For super senior citizens (aged 80 years or above), the basic exemption limit is Rs. 5,00,000. Income between Rs. 2,50,001 and Rs. 5,00,000 is not taxed. Income between Rs. 5,00,001 and Rs. 10,00,000 is taxed at 20%, while income above Rs. 10,00,000 is taxed at Rs. 1,00,000 plus 30% of the income exceeding Rs. 10,00,000.

Yes, in addition to the income tax, a surcharge of 10% is imposed on income between Rs. 50 lakhs and Rs. 1 crore, and 15% on income exceeding Rs. 1 crore. Furthermore, a health and education cess at the rate of 4% is added to the aggregate of income tax and surcharge.

For cooperative societies, income up to Rs. 10,000 is taxed at 10%. Income between Rs. 10,001 and Rs. 20,000 is taxed at Rs. 1,000 plus 20% of the income exceeding Rs. 10,000. Income above Rs. 20,000 is taxed at Rs. 3,000 plus 30% of the income exceeding Rs. 20,000. If the income exceeds Rs. 1 crore, a surcharge of 12% on tax is computed, and a health and education cess of 4% is added to the aggregate of income tax and surcharge.

Partnership firms are charged a flat tax rate of 30% on their income. If the income exceeds Rs. 1 crore, a surcharge of 12% on tax is computed. The health and education cess at the rate of 4% is added to the aggregate of income tax and surcharge.

The taxable income of local authorities is liable for a tax of 30%. If the income exceeds Rs. 1 crore, a surcharge of 12% on tax is levied. The health and education cess at the rate of 4% is added to the aggregate of income tax and surcharge.

Domestic companies with a total turnover of up to Rs. 250 crores during the previous financial year are required to pay a tax of 25% on their taxable income. If the total income exceeds Rs. 1 crore, a surcharge of 7% on tax is payable. If the total income exceeds Rs. 10 crores, a surcharge of 12% on tax is payable. The health and education cess at the rate of 4% is added to the aggregate of income tax and surcharge.

Foreign companies are required to pay a tax of either 40% or 50% on their taxable income, depending on their specific circumstances. If the total income exceeds Rs. 1 crore, a surcharge of 2% on tax is payable. If the total income exceeds Rs. 10 crores, a surcharge of 5% on tax is payable. The health and education cess at the rate of 4% is added to the aggregate of income tax and surcharge.

Yes, in addition to the income tax and surcharge (if applicable), a health and education cess at the rate of 4% is added to the aggregate of income tax and surcharge for all taxpayers. This cess is applicable across all categories of taxpayers, including individuals, partnerships, companies, and others.