The content in this tax guide is provided by EY.
Going to or leaving India
Local information | Details |
---|---|
Tax authority |
Income Tax Department, Department of Revenue, Ministry of Finance |
Website |
|
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 information |
Tax authority |
---|---|
Details |
Income Tax Department, Department of Revenue, Ministry of Finance |
Local information |
Website |
Details | |
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
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% |
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
How can I open an offshore bank account?
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.
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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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