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Tax in India

Your personal tax guide for India

The content in this tax guide is provided by EY.

Going to or leaving India

Local tax information for India.

Local information Details

Tax authority

Income Tax Department, Department of Revenue, Ministry of Finance

Website

www.incometaxindia.gov.in

Tax year

1 April to 31 March

Tax return due date

31 July

Is joint filing possible

No

Are tax return extensions possible

Yes, to 30 September if income includes business income and accounts are subject to a tax audit.

Local tax information for India.

Local information

Tax authority

Details

Income Tax Department, Department of Revenue, Ministry of Finance

Local information

Website

Details

www.incometaxindia.gov.in

Local information

Tax year

Details

1 April to 31 March

Local information

Tax return due date

Details

31 July

Local information

Is joint filing possible

Details

No

Local information

Are tax return extensions possible

Details

Yes, to 30 September if income includes business income and accounts are subject to a tax audit.

2020/21 income tax rates

2020/21 Taxable income bands for residents.

Taxable income band INR National income tax rates

1 to 250,000

0%

250,001 to 500,000

5%

500,001 to 1,000,000

20%

1,000,001 +

30%

2020/21 Taxable income bands for residents.

Taxable income band INR

1 to 250,000

National income tax rates

0%

Taxable income band INR

250,001 to 500,000

National income tax rates

5%

Taxable income band INR

500,001 to 1,000,000

National income tax rates

20%

Taxable income band INR

1,000,001 +

National income tax rates

30%

For individuals whose total taxable income exceeds INR 5 million, a surcharge applies at a rate of 10% of the total tax payable. If the total taxable income exceeds INR 10 million, the rate of the surcharge is increased to 15% of the total tax payable. If total taxable income exceeds INR 20 million, the rate of the surcharge is increased to 25% of the total tax payable. If the total taxable income exceeds INR 50 million, the rate of the surcharge is increased to 37% of the total tax payable. The increased rate of the surcharge to 25% and 37% is not applicable to capital gains earned on the sale of some specific assets. Marginal relief is allowed to ensure that the additional amount of income tax payable, including the surcharge, on the excess of income over the respective limits of INR 5 million,  INR 10 million, INR 20 million and INR 50 million is limited to the amount by which the income exceeds such limits.

Health and education cess is levied at a rate of 4% on the tax payable and surcharge. The following are maximum marginal tax rates:

  • if total annual income is INR 5 million or less, the maximum marginal tax rate is effectively 31.2% (30% + 4% health and education cess)
  • if total annual income is more than INR 5 million but less than INR 10 million, the maximum marginal tax rate is effectively 34.32% (30% + 10% surcharge + 4% health and education cess)
  • if total annual income is more than INR 10 million, the maximum marginal tax rate is effectively 35.88% (30% + 15% surcharge + 4% health and education cess)
  • if the total annual income is more than INR 20 million (excluding capital gains on specified assets), the maximum marginal tax rate is effectively 39% (30% + 25% surcharge + 4% health and education cess)
  • if the total annual income is more than INR 50 million (excluding capital gains on specified assets), the maximum marginal tax rate is effectively 42.74% (30% + 37% surcharge + 4% health and education cess)

Expat tax guides

Read tax guides for expats provided by EY.

Additional information

The Tax Navigator section is provided by EY in accordance with their Terms and Conditions (PDF). EY accepts no responsibility for the accuracy of this information. By using this information, you are accepting the terms under which EY is making the content available to you based on the legislation and practices of the country concerned as of 15/09/21 by EY and published in its Worldwide Personal Tax Guide, 2020-21.

Tax legislation and administrative practices may change, and this content is a summary of potential issues to consider. This content is provided for guidance purposes only; it is not meant for direct implementation of transactions or reliance upon when considering entering into transactions. It should not be used as a substitute for professional tax, legal, financial, accounting, consulting, regulatory or other professional advice and you should seek professional advice before taking any action. It is your responsibility to ensure you make all relevant disclosures to the relevant tax authorities and that you are compliant with local tax legislation. EY accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

HSBC accepts no responsibility for the accuracy of this information.

This information does not constitute advice and no liability is accepted to recipients acting independently on its contents. The views expressed are subject to change.

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