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Worldwide Tax Summaries

India
Overview
Last reviewed - 14 December 2023

India, a country in South East Asia, is the seventh-largest country by geographical area, the second-most populous country
with over 1.25 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, estimated at 7% in tax year 2022/23 (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, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, Pune, and Raipur.

Quick rates and dates

Corporate income tax (CIT) rates

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

Headline CIT rate (%) certain conditions.
Foreign companies (having PE in India): 40% (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

31 October of succeeding tax year.

30 November of succeeding tax year if the corporation has

CIT return due date
international transactions with associate affiliates/specified
domestic transactions.

CIT final payment due date Before submission of return of income.

Estimated tax is due in quarterly instalments payable before the

CIT estimated payment due dates 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

New personal tax regime: 39.00 (i.e. 30% + 25% surcharge + 4%

health and education cess);
Headline PIT rate (%)
Old tax regime: 42.744 (i.e. 30% + 37% surcharge + 4% health and
education cess)

Personal income tax (PIT) due dates

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
PIT return due date 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.

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
PIT estimated payment due dates [15%], 15 September [45%], 15 December [75%], 15 March
[100%]).

Value-added tax (VAT) rates

The rate of GST varies from 5% to 28% depending upon the

category of goods and services being supplied, the general rate of
Standard VAT rate (%) 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

Resident: 10 / 10 / 2 to 10 / 2 to 10 for fees for technical services;

Non-resident*: 20 / 5 to 40 / 20 / 20 for fees for technical services

(For non-residents, the above are to be enhanced by applicable

WHT rates (%) (Dividends/Interest/Royalties)
surcharge and health and education cess)

*Subject to the rates provided under Double Taxation Avoidance

Agreement.

Capital gains tax (CGT) rates

10%/20% (applicable surcharge and cess) long-term and 15%/40%

(applicable surcharge and cess) short-term (may be exempt under
Double Taxation Avoidance Agreement).
Headline corporate capital gains tax rate (%)
Please refer to Capital gains in the Income determination section
for more details.
Capital gains tax (CGT) rates

Long-term capital gain: 10 (on sale of equity shares/ units of equity

Headline individual capital gains tax rate (%)
oriented funds/units of business trust in excess of INR 100,000
and security transaction tax is paid). 10 for non-residents without
cost inflation adjustment or 20 for residents/ non-residents with
cost inflation adjustment (on sale of any other asset).
Short-term capital gain: 15 (if securities transaction tax paid on
sale of equity shares/ units of equity oriented funds/ units of
business trust) or normal slab rates (on sale of any other asset).

Net wealth/worth tax rates

Headline net wealth/worth tax rate (%) NA

Inheritance and gift tax rates

Headline inheritance tax rate (%) NA

Taxable in the hands of recipient and subject to tax at normal slab

Headline gift tax rate (%) rates.

India contacts
Sanjay Tolia
Tax Leader

+91 98 2131 9468

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