Income Tax for Individual

What is Income Tax?

Income tax is the tax levied by the government on the total income earned by the assessee.

Types of Income

There are 5 head of income in which the earning or total income can be catogarised as per Income Tax Act, 1961.

  1. Income from Salary
  2. Income from Business and Profession
  3. Income from House Property
  4. Income from Capital Gain
  5. Income from Other Sources

Available Deduction

If any individual makes investment in some of the specified investment schemes or does expenses for some specific purposes, then it would be available as deduction from the gross total income earned by the assessee as given under :

Section Particulars Limit


MF-ELSS, PPF, PF,LIP, Tax saving Fixed Deposit, Repayment of housing loan, tuition fees of children, etc.



Mediclaim of self, child and spouse

For parents (Rs. 30,000/- in case of senior citizen instead of 25000)



80G Donation to charitable Institute

  50% of net total income


Interest on Higher Education   Actual Interest paid


Interest on Housing Loan   Max uptoRs. 2 Lacs



Taxability of the income (For the A.Y. 2018-19)

Income tax is levied on the income earned by the assessee as per the slab of the income as mentioned hereunder

For Ind/HUF Senior Citizen Very senior Citizen Rate of Income Tax

Upto 250000

Upto 300000 Upto 500000 Nil








Above 1000000 Above 1000000 Above 1000000



Rebate uptoRs. 2500/- is available to the assessee if total income of the assesseedoes not exceeds Rs. 3,50,000/-

On the Income tax calculated as above education cess and secondary and higher education cess is to be calculated @ 3%.

The surcharge will be 10% of the taxable Income between Rs. 50 lakhs to Rs. 1 crore

The surcharge will be 15% of the taxable Income above Rs. 1 crore