Tax Rates in India

Tax Rates in India are variable pertaining to the type of income on which the tax is imposed. The tax rate in India depend on several factors, such as source of the income, type of the income, the individual, etc.

Personal tax rates in India:

For taxable income above Rs. 0 but less than Rs. 1,10,000, rate of tax deduction is 0%

For taxable income less than Rs. 1,45,000 in case of women, rate of tax deduction is 0%

For taxable income less than Rs. 1,95,000 in case of an individual who is above the age of 65 and residing in the country, rate of tax deduction is 0%

For taxable income above Rs. 1,10,000 but less than Rs. 1,50,000, rate of tax deduction is 10%

For taxable income above Rs. 1,50,001 but less than Rs. 2,50,000, rate of tax deduction is 20%
For taxable income above Rs. 2,50,001 but less than Rs. 1,000,000, rate of tax deduction is 30%
For taxable income above Rs. 1,000,001, rate of tax deduction is 30%, and a surcharge of 10% of the entire income tax liability added in case the income exceeds Rs. 1,000,000
The cess on education is charged at the rate of 3% on the income tax
There are several rebates and exemptions on income tax in India

Domestic Corporate tax rates in India:

For Domestic Corporations the effective tax rate is 30% and the tax rate with surcharge is 30%
Attention must also be given on the fact that all of the companies formed in India are regarded as Indian domestic companies, even in
the case of ancillary units with mother concerns in foreign countries
Attention must be given on the factor that if the taxable income is more than Rs. 1,000,000, then a surcharge of 10% of the tax on
income is levied

Foreign Companies tax rates in India:

For dividends 20% in case of non-treaty foreign companies and 15% for companies under the treaty based in United States
For technology based services in case of non-treaty foreign companies and 20% for companies under the treaty based in United States
For royalties 30% in case of non-treaty foreign companies and 20% for companies under the treaty based in United States
For interest gains 20% in case of non-treaty foreign companies and 15% for companies under the treaty based in United States
For other kinds of income and gains 55% in case of non-treaty foreign companies and 55% for companies under the treaty based in United States
Attention must be given on the several of the tax treaties India signed with the other countries and also the various encouraging tax
rates
Attention must be given on levying inter corporate rates in case the holding is minimum
Attention must be given on the fact that the sanctions of the tax authorities on tax withholding