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India
Overview
Last reviewed - 17 December 2024India, a country in South East Asia, is the seventh-largest country by geographical area, the most populous country with over 1.43 billion people, and the most populous democracy in the world. It is bounded by the Indian Ocean to the south, the Arabian Sea to the southwest, and the Bay of Bengal to the southeast. It shares land borders with Pakistan to the west; Bhutan, the People's Republic of China, and Nepal to the northeast; and Bangladesh and Myanmar to the east. India is divided into 28 states and eight union territories, with New Delhi as the capital. The official languages of India are Hindi and English, and the currency is the Indian rupee (INR).
India gained independence in 1947 and is developing into an open-market economy. Economic liberalisation, including reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth rate, projected at 7% in tax year 2024/25 (tax year begins on 1 April and ends on 31 March of the following year; note that, in India, 'tax year' is referred to as 'financial year' and the year following a 'tax year' is referred to as 'assessment year').
Over the seven decades since independence, the country has achieved self-sufficiency in terms of food and grains. India is now a net exporter of food. Life expectancy has more than doubled, literacy rates have quadrupled, health conditions have improved, and a sizeable middle class has emerged. India is now home to globally recognised companies in pharmaceuticals, automobiles, steel, and information and space technologies.
PwC has offices in Ahmedabad, Bengaluru, Bhopal, Bhubaneswar, Chennai, Delhi NCR, Dehradun, Hyderabad, Jaipur, Kolkata, Mumbai, and Pune.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
Domestic companies: 1. 25% or 30% (plus applicable surcharge and cess) depending on turnover. 2. 15% or 22% (plus applicable surcharge and cess) subject to certain conditions. Foreign companies (having PE in India): 35% (plus applicable surcharge and cess) Please refer to the Taxes on corporate income section for effective tax rates for different classes of companies. |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date |
31 October of succeeding tax year. 30 November of succeeding tax year if the corporation has international transactions with associate affiliates/specified domestic transactions. |
| CIT final payment due date |
Before submission of return of income. |
| CIT estimated payment due dates |
Estimated tax is due in quarterly instalments payable before the 15th day of each quarter of tax year (i.e. 15 June [15%], 15 September [45%], 15 December [75%], 15 March [100%]). |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) |
New personal tax regime: 39.00 (i.e. 30% + 25% surcharge + 4% health and education cess); Old tax regime: 42.744 (i.e. 30% + 37% surcharge + 4% health and education cess) |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
31 July of the succeeding tax year. 31 October of succeeding tax year if accounts are required to be audited under income tax law or under any other law for the time being in force. 30 November of succeeding tax year if there are international transactions with associate affiliates/specified domestic transactions. |
| PIT final payment due date |
Before submission of return of income. |
| PIT estimated payment due dates |
Estimated tax needed to be paid is due in quarterly instalments payable before 15th day of each quarter of tax year (i.e. 15 June [15%], 15 September [45%], 15 December [75%], 15 March [100%]). |
| Value-added tax (VAT) rates | |
|---|---|
| Standard VAT rate (%) |
The rate of GST varies from 5% to 28% depending upon the category of goods and services being supplied, the general rate of tax being 18% on majority of goods and services. Additionally, for certain goods, a compensation cess is levied at different rates as prescribed by the government. |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
Resident: 10 / 10 / 2 to 10 / 2 to 10 for FTS; Non-resident*: 20 / 5 to 35 / 20 / 20 for FTS (For non-residents, the above are to be enhanced by applicable surcharge and health and education cess) *Subject to the rates provided under Double Taxation Avoidance Agreement where applicable. |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
For transfer of securities on or after 23 July 2024: 12.5% (plus applicable surcharge and cess) for long-term gains; 20%/35% (plus applicable surcharge and cess) for short-term gains (may be exempt under Double Taxation Avoidance Agreement). Please refer to Capital gains in the Income determination section for more details and rates for transfers before 23 July 2024. |
| Headline individual capital gains tax rate (%) |
For transfer of securities on or after 23 July 2024: 12.5% (plus applicable surcharge and cess) for long-term gains in excess of INR 125,000; 20% for short-term gains (if securities transaction tax paid on sale of equity shares/ units of equity oriented funds/ units of business trust) or tax rates otherwise applicable (on sale of any other asset). Please refer to Capital gains taxes in the Other taxes section for more details and rates for transfers before 23 July 2024. |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
NA |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
NA |
| Headline gift tax rate (%) |
Taxable in the hands of recipient and subject to tax at normal slab rates. |
