Central & South Asia
India: tax at a glance
Residents are taxed on worldwide income. Personal tax is progressive, GST applies to consumption, and India does not permit dual citizenship, only OCI status.
Worldwide (residence-based)
Last verified
Ways to relocate to India
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 30%The system is progressive. The top slab is 30%, plus a surcharge capped at 25% under the new regime (up to 37% under the old regime) and a 4% health and education cess, for an effective top rate of about 39%.
- Corporate income
- 30%
- Capital gains
- Long-term capital gains are taxed at 12.5%, short-term gains on listed equity at 20%. Other assets are taxed according to how long they were held.
- VAT / GST
- 18%
- Dividends (WHT)
- 20%
- Interest (WHT)
- 20%
- Royalties (WHT)
- 20%
- Social security (employee)
- 12%
- Social security (employer)
- 12%
- Wealth tax
- None. It was abolished in 2015.
- Inheritance / estate
- None. Estate duty was abolished in 1985.
- Property tax
- A municipal property tax applies, and rates vary by city.
- Other
- A 4% health and education cess applies on top of the income surcharge. Domestic companies pay a concessional rate of 22% (about 25.17% effective), or 15% under the new-manufacturing regime.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Participating
A special regime for new arrivals
Residents but Not Ordinarily Resident (RNOR) status shelters foreign income for a limited transition period for returning NRIs. That window typically runs 2–3 years. It is the key planning period for anyone repatriating to India.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.