India
Top Income Tax
30%
Marginal rate
Corporate Tax
25.17%
Standard rate
VAT / Sales Tax
18%
Standard rate
Capital Gains
12.5%
Standard rate
Overview
India offers one of the world's lowest costs of living with a massive consumer market. The new tax regime simplifies brackets. India is a global IT hub with Bangalore, Hyderabad, and Pune as major tech centers. No dedicated digital nomad visa exists.
Income Tax Brackets
| Income Range (INR) | Tax Rate |
|---|---|
| 0 - 300,000 | 0% |
| 300,000 - 700,000 | 5% |
| 700,000 - 1,000,000 | 10% |
| 1,000,000 - 1,200,000 | 15% |
| 1,200,000 - 1,500,000 | 20% |
| 1,500,000+ | 30% |
New regime rates (default from 2024). Old regime with deductions still available. Plus 4% health/education cess.
Corporate Tax
Standard Rate
25.17%
22% + surcharge + cess for existing companies. 15% for new manufacturing companies (effective ~17.16%).
VAT / Sales Tax
Standard Rate
18%
Reduced Rates
5%, 12%
GST system: 5%, 12%, 18%, 28% slabs. 18% is most common for services.
Capital Gains Tax
Standard Rate
12.5%
Short-term: 20% on listed, 30% on unlisted. Long-term: 12.5% above 1.25 lakh exemption.
Social Security Contributions
Employee
12%
Employer
12%
Self-Employed
0%
PF (Provident Fund) 12% each for employees earning up to 15k/month basic. Voluntary for self-employed.
Special Tax Regimes
SEZ (Special Economic Zone)
Tax holidays and exemptions for businesses in designated zones.
Eligibility: Must set up operations in a notified SEZ. Various conditions apply.
Pros & Cons
Pros
- Lowest cost of living globally
- Massive consumer market
- Strong IT talent pool
- 15% manufacturing corporate tax
- English widely used in business
Cons
- Complex tax system with multiple regimes
- No digital nomad visa
- Bureaucratic challenges
- Infrastructure varies widely
- High GST on many services
Living Indicators
Cost of Living Index
Very affordable
Quality of Life Index
Average
Best For
Data Sources
Tax rate data for India is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- India government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.