Income-tax rates AY 2007-08 — Finance Act, 2007

Independently re-read on 2 September 2026

A second pass went back to the department’s text at the sources listed at the foot of this page and read these figures again. That check is recorded in the record itself as verified_on: 2026-09-02.

What this year’s reading did not reach

ONLY THE EDUCATION CESS OF TWO PER CENT IS RECORDED, AND THAT IS DELIBERATE. This Act does contain a Secondary and Higher Education Cess of one per cent, at section 2(12), but its words confine it to 'sub-sections (4) to (10)' - deduction of tax at source and advance tax for the financial year 2007-2008, that is assessment year 2008-09. The Education Cess at section 2(11) is the one that reaches 'sub-sections (1) to (10)' and so charges the assessment year commencing 1 April 2007. The two must not be merged for this year. Part I of the First Schedule mentions no cess of either kind. Section 2 states no 'maximum amount which is not chargeable to income-tax'; the three exemption figures are taken from the Nil rows of Paragraph A. No marginal-relief proviso wording was returned for the individual surcharge, and no rupee threshold was returned for the firm surcharge under Paragraph C. There is no super-senior class in this year.

Which Act set these rates

Act

Finance Act, 2007

Assessment year

2007-08

Income of the previous year

2006-07

What was read

the charging section and the First Schedule

The Act itself

Finance Act, 2007 in this library

Finance Act, 2007 charged income-tax for the assessment year commencing 1 April 2007. What it charged was the income of the previous year 2006-07. The two are a year apart and the difference matters: a table headed by the wrong one is useless.

The slabs

Individuals generally

every individual other than the individual referred to in items (II) and (III) of Paragraph A, Hindu undivided family, association of persons, body of individuals, artificial juridical person

Maximum amount not chargeable to income-tax: Rs 1,00,000

Total income	Rate of income-tax
Up to Rs 1,00,000	Nil
Rs 1,00,001 – Rs 1,50,000	10%
Rs 1,50,001 – Rs 2,50,000	20%
Rs 2,50,001 and above	30%

Sub-paragraph (I): does not exceed Rs. 1,00,000 - Nil; exceeds Rs. 1,00,000 but does not exceed Rs. 1,50,000 - 10 per cent of the amount by which the total income exceeds Rs. 1,00,000; exceeds Rs. 1,50,000 but does not exceed Rs. 2,50,000 - Rs. 5,000 plus 20 per cent of the amount by which the total income exceeds Rs. 1,50,000; exceeds Rs. 2,50,000 - Rs. 25,000 plus 30 per cent of the amount by which the total income exceeds Rs. 2,50,000.

Resident woman below sixty-five

every individual, being a woman resident in India, and below the age of sixty-five years

Maximum amount not chargeable to income-tax: Rs 1,35,000

Total income	Rate of income-tax
Up to Rs 1,35,000	Nil
Rs 1,35,001 – Rs 1,50,000	10%
Rs 1,50,001 – Rs 2,50,000	20%
Rs 2,50,001 and above	30%

Sub-paragraph (II), 'every individual, being a woman resident in India, and below the age of sixty-five years': does not exceed Rs. 1,35,000 - Nil; exceeds Rs. 1,35,000 but does not exceed Rs. 1,50,000 - 10 per cent of the amount by which the total income exceeds Rs. 1,35,000; exceeds Rs. 1,50,000 but does not exceed Rs. 2,50,000 - Rs. 1,500 plus 20 per cent of the amount by which the total income exceeds Rs. 1,50,000; exceeds Rs. 2,50,000 - Rs. 21,500 plus 30 per cent of the amount by which the total income exceeds Rs. 2,50,000.

Resident individual sixty-five or more

every individual, being a resident in India, who is of the age of sixty-five years or more

Maximum amount not chargeable to income-tax: Rs 1,85,000

Total income	Rate of income-tax
Up to Rs 1,85,000	Nil
Rs 1,85,001 – Rs 2,50,000	20%
Rs 2,50,001 and above	30%

Sub-paragraph (III), 'every individual, being a resident in India, who is of the age of sixty-five years or more': does not exceed Rs. 1,85,000 - Nil; exceeds Rs. 1,85,000 but does not exceed Rs. 2,50,000 - 20 per cent of the amount by which the total income exceeds Rs. 1,85,000; exceeds Rs. 2,50,000 - Rs. 13,000 plus 30 per cent of the amount by which the total income exceeds Rs. 2,50,000. There is no 10 per cent band in this sub-paragraph.

Senior citizens, very senior citizens, and women

Only where the Act for this year set a separate threshold or a separate table. Where it did not, this page says so.

Resident senior citizens

resident individual of the age of sixty-five years or more (this year's cut-off is 65, not 60); the full slab table is the third entry in regimes

Maximum amount not chargeable to income-tax: Rs 1,85,000

Resident very senior citizens

This year’s record carries no separate table or threshold under this head.

Resident women

This year’s record carries no separate table or threshold under this head.

Surcharge

Total income	Surcharge on the income-tax
Rs 10,00,001 and above	10%

Part I, Paragraph A: surcharge at the rate of ten per cent of such income-tax where the total income exceeds ten lakh rupees. The same ten per cent surcharge applies to firms under Paragraph C and to domestic companies under Paragraph E (the latter where the total income exceeds ten lakh rupees); a company other than a domestic company bears a surcharge of two and one-half per cent. Paragraph B (co-operative societies) and Paragraph D (local authorities) carry no surcharge sentence at all.

Cess

Cess	Rate
Education Cess on income-tax	2%

Marginal relief

No marginal-relief provision is recorded for this year.

Companies, firms, co-operative societies and local authorities

Reproduced in the Act’s own words, because these rates carry conditions a single percentage cannot.

Assessee	Rate as the Act states it
Domestic company	30 per cent of the total income; surcharge 10 per cent of such income-tax where the total income exceeds ten lakh rupees
Foreign company	50 per cent on royalties and fees for technical services under the specified approved agreements; 40 per cent on the balance of the total income; surcharge two and one-half per cent of such income-tax
Firms and limited liability partnerships	30 per cent on the whole of the total income; surcharge 10 per cent of such income-tax (Part I, Paragraph C)
Co-operative societies	Part I, Paragraph B: total income not exceeding Rs. 10,000 - 10 per cent of the total income; exceeding Rs. 10,000 but not exceeding Rs. 20,000 - Rs. 1,000 plus 20 per cent of the amount by which the total income exceeds Rs. 10,000; exceeding Rs. 20,000 - Rs. 3,000 plus 30 per cent of the amount by which the total income exceeds Rs. 20,000; Paragraph B carries no surcharge sentence
Local authorities	30 per cent on the whole of the total income (Part I, Paragraph D); Paragraph D carries no surcharge sentence

What changed from the year before

Worked out by comparing this record with the one for the preceding assessment year in this collection. Where a figure is absent from either record, that is said rather than guessed.

Against assessment year 2006-07 (Finance Act, 2006): the individuals generally regime’s exemption limit is unchanged at Rs 1,00,000.
Against assessment year 2006-07 (Finance Act, 2006): the resident individual sixty-five or more regime’s exemption limit is unchanged at Rs 1,85,000.
Against assessment year 2006-07 (Finance Act, 2006): the resident woman below sixty-five regime’s exemption limit is unchanged at Rs 1,35,000.
The top slab rate is unchanged at 30%.
The surcharge is unchanged: 1 tier, topping out at 10%.
The cess is unchanged: Education Cess on income-tax 2%.
The company rates stand in the same words as the year before.
The firm rate stand in the same words as the year before.
The co-operative society rates stand in the same words as the year before.
The local authority rate stand in the same words as the year before.
The separate threshold for resident senior citizens is unchanged at Rs 1,85,000.

Sources

The Income Tax Department’s own records for this Act. These are the documents the figures above were read out of.

The department’s index of Finance Acts is at https://www.incometaxindia.gov.in/finance-acts.

The years either side

← AY 2006-07 · AY 2008-09 →

What this page is, and what it is not

The figures are the Finance Act’s own. Every rate, threshold and exemption on this page was taken out of the Income Tax Department’s own text of the Act that charged the year — the charging section and the First Schedule — and the records we read are linked under Sources on each year’s page. The writing around the figures is ours: the arrangement, the headings, the comparison with the year before and every sentence of explanation. Those are not the Act.

These tables are for orientation. The Act governs. A rate table is a finding aid, not the law. The Act, its First Schedule and the provisos in it decide what is payable, and a table cannot carry the provisos. If you are about to rely on a figure here — in a return, in a computation, in a reply to a notice — open the source linked on the year’s page and read the figure in the Act for yourself. Where a record did not reach a rate, this library says so rather than filling the gap.

Income-tax rates for assessment year 2007-08