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Taxation in India

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Taxation in India

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Taxation in India

Income Tax

Resident taxpayers in India are taxed on their worldwide income. You will be accountable for Income tax, Agricultural Income Tax (imposed by individual states) and Interest tax. The latter applies to banking and financial business. Transaction taxes cover Central Sales Tax, Local Sales Tax (imposed by individual states), Customs Duty, Excise Duty, Stamp Duty, Gift Tax, Expenditure Tax, and Value Added Tax. Property and Wealth Tax also appear in India.

Income tax in India is progressive. Here is how much you pay determined by how much you earn:

  • 0% on income between 1 and 200,000

  • 10% on income between 200,001 and 500,000

  • 20% on income between 500,001 and 1,000,00

  • 30% on income of  1,000,01 and above

Corporate Tax

Limited companies in India are liable for tax at the rate of 30% for local companies and 40% for foreign companies.

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