Income Tax Rates 2018 – Finance Act, 2018
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.
