Madaan & Co.
Attorneys at law & Advocates   lawfirm

TAX RATES IN INDIA

Tax Rates in India Corporate Taxes Individual Taxes
 Wealth Tax Gift Tax Tax laws
India USA Tax Treaty Applicable Rates, Tax Rates for USA Companies Doing Business in India, Withholding Taxes for Foreign Companies, Tax Rates for Foreign Companies Doing Business in India
 

Madaan & Co.
Attorneys at law
E-mail:  click here
Fax: (216) 928-9537

WWW.MADAAN.COM
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Click here for Latest Tax Rates in India

Tax Rates in India Before 2008 Budget

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Withholding Taxes for Foreign Companies under the Tax Treaties
 

Individual Income Tax Rates

Taxable Income
Tax Rate
Over
Not Over
0 Rs. 100,000 1 0
Rs. 100,001 Rs. 150,000 10%
Rs. 150,001 Rs. 250,000 20%  
Rs. 250,001 above 30%  
Rs. 1 million above 30% 2
1. Rs. 125,000 for women and Rs. 150,000 for seniors.    2. A surcharge of 10% on income tax is levied where taxable income exceeds Rs. 1 million which makes it effective 33% including surcharge. 3. (a) Tax exemption on interest in Non-Resident (external) Account and on interest payable by a scheduled bank to Non-Resident Indians (NRI's).  (b) Tax exemption on the interest payable by a scheduled bank to a non-resident or a person who is not ordinarily resident on deposits in foreign currency where the acceptance of such deposits by the bank is approved by the RBI. .

Domestic Corporate Income Taxes Rates

Tax Rate
Effective Tax Rate with surcharge
Domestic Corporations 30% 33% 1
1. A surcharge of 10% of the income tax is levied, if the taxable income exceeds Rs. 1 million.

2. All companies incorporated in India are deemed as domestic Indian companies for tax purposes, even if owned by foreign companies. Contact us for Incorporating in India

Foreign Companies Tax Rates

Withholding Tax Rate for non-treaty foreign companies
Withholding Tax Rates for the USA Companies Doing Business in India under the India USA Tax Treaty
Dividends 20% 15% 1
Interest Income 20% 15% 2
Royalties 30% 20% 2
Technical Services 30% 20% 2
Other income 55% 55%  
1. Inter-corporate rates where there is minimum holding. There tax rates are applicable under the India USA Tax Treaty. For other countries the tax rates are different under the tax treaties between India and other countries, including Australia, Austria, Bangladesh, Belgium, Brazil, Belarus, Bulgaria, Canada, China, Cyprus, Czechoslovakia, Denmark, Finland, France, Germany, Greece, Hungary, Indonesia, Israel, Italy, Japan, Jordan, Kazakhstan, Kenya, Libya, Malta, Malaysia, Mauritius, Mongolia, Namibia, Nepal, Netherlands, New Zealand, Norway, Oman, Philippines, Poland , Qatar , Romania, Singapore, South Africa , South Korea , Spain , Sri Lanka , Sweden, Switzerland, Syria, Tanzania, Thailand, Trinidad & Tobago, Turkmenistan, Turkey , U.A.E. , U.A.R., U.K., U.S.A., Russian Federation, Uzbekistan, Vietnam and Zambia
2. 10% or 15% in some cases.
3. Withholding tax is charged on estimated income, as approved by the tax authorities.
4. There are other favorable tax rates under various tax treaties between India and other countries..

Wealth Tax

Net Taxable Wealth
Tax Rate
Over
Not Over
0 Rs.1,500,000 0
Rs.1,500,000 above 1%
Wealth tax is levied on non-productive assets whose value exceeds Rs.1.5 million. Productive assets like shares, debentures, bank deposits and investments in mutual funds are exempt from wealth tax. The non-productive assets include residential houses, jewelry, bullion, motor cars, aircraft, urban land, etc. Foreign nationals are exempt from wealth tax on non-Indian assets.  In arriving at the net taxable wealth, any debt incurred in acquiring specified assets is deductible.

Gift Tax

Net Taxable Gift
Tax Rate
Over
Not Over
0 Rs.30,000 0
Rs.30,000 above 30%
Gifts to dependent relatives at the time of marriage are exempt upto Rs.100,000.  Foreign nationals are exempt from gift tax on non-Indian assets.

Tax on cash withdrawal from banks


0.1% tax levied on cash withdrawals of over Rs 25,000 from banks on a day. (Yes, this is true)
US$1=Indian Rs. 40 app.
All rates as per on the date of update.
For Updated Tax Rates and International Tax Treaties Contact us
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Services Offered by Us

Madaan & Co. has helped Companies from the USA, Europe, India and other foreign countries in their international tax planning and corporate structuring.  Click here to learn more about Our Services.

Our lawyers include those trained at premier law firms in the United States of America, Europe & India, who understand the multi-cultural aspects of international business and the multi-jurisdictional aspects of legal practice in this age of globalization.
Our professional team of attorneys-at-law include those educated at Harvard Law School, Harvard University in the USA.

 

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Contact Information:
Madaan & Co.
Attorneys at law
E-mail:  click here
Fax: +1 (216) 928-9537
(a US area code)
WWW.MADAAN.COM


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Cultural Training Workshop for American & Canadian Executives Doing Business with India

Click here for details

 

Doing Business with India
National Conference in USA

Click here for date & location

  Legal Outsourcing
Legal Process Outsourcing
Legal Outsourcing
Paralegal Outsourcing