{"id":112,"date":"2022-10-17T11:10:35","date_gmt":"2022-10-17T11:10:35","guid":{"rendered":"https:\/\/lawyer-india.com\/?p=112"},"modified":"2023-03-07T17:39:35","modified_gmt":"2023-03-07T17:39:35","slug":"taxation-in-india","status":"publish","type":"post","link":"https:\/\/lawyer-india.com\/taxation-in-india\/","title":{"rendered":"Taxation in India"},"content":{"rendered":"\n<p><strong>Taxation in India<\/strong>&nbsp;is performed on a residency basis with resident companies being taxed on their worldwide income and non-resident corporations only on their Indian-sourced profits. The corporate income tax applies to a company\u2019s profits that include the business or trade income, the passive income as well as capital gains. For individuals, the tax applies to the income derived from employment.<\/p>\n\n\n\n<p>Our team of&nbsp;<a href=\"https:\/\/www.lawyer-india.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>taxation lawyers in India<\/strong><\/a>&nbsp;is able to provide tailored solutions to resident and non-resident companies that are in need of specialized legal aid regarding specific tax law matters.<\/p>\n\n\n\n<p>Our&nbsp;<a href=\"https:\/\/www.lawyer-india.com\/immigrate-to-india\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>immigration lawyers in India<\/strong><\/a>&nbsp;will also answer any questions about this matter.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #002e5b;color:#002e5b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #002e5b;color:#002e5b\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lawyer-india.com\/taxation-in-india\/#corporate-taxation-in-india\" title=\"Corporate taxation in India\">Corporate taxation in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lawyer-india.com\/taxation-in-india\/#tax-administration-in-india\" title=\"Tax administration in India\">Tax administration in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lawyer-india.com\/taxation-in-india\/#individual-taxation-in-india\" title=\"Individual taxation in India\">Individual taxation in India<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"corporate-taxation-in-india\"><\/span><strong>Corporate taxation in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The list below is a quick guide of the main&nbsp;<strong>taxes applicable to companies in India<\/strong>:<\/p>\n\n\n\n<ul>\n<li>Corporate income tax: has a 25% rate plus a surcharge for some types of companies; other rates include a 30% rate and a 40 rate for nonresident companies.<\/li>\n\n\n\n<li>Surcharge: this applies to some types of resident companies with an income that exceeds 10 million INR; one of our taxation lawyers in India can help you with more information.<\/li>\n\n\n\n<li>Branch rate: this is 40% plus the additional surcharge that applies to non-resident companies.<\/li>\n\n\n\n<li>Capital gains tax: this is not applicable in all cases but has a value between 10% and 40%.<\/li>\n\n\n\n<li>Withholding taxes: not applicable to dividends, applicable to interest, royalties.<\/li>\n\n\n\n<li>Social security contributions: has a value equivalent to 12% of the wage (and it applies both to the employee and the employer).<\/li>\n\n\n\n<li>Other taxes: a set of other taxes like the real estate tax, the stamp duty or the securities transaction tax have varying values; one of our taxation lawyers in India can detail.<\/li>\n<\/ul>\n\n\n\n<p>The goods and services tax (GST), as well as the VAT and the customs duty (both for GST and non-GST goods), are also important taxes investors need to keep in mind when doing business in India.&nbsp;<\/p>\n\n\n\n<p>The Goods and Services Tax applies to the supply of goods and services and it applies to a central level and at a state level. Five rates apply and they are 0%, 5%, 12%, 18% and 20% with the 18% rate being a common one for most types of services. A special rate of 0.25% applies to rough semi-precious and precious stones.<\/p>\n\n\n\n<p>After the introduction of the GST, the number of goods to which the value added tax still applies is limited and includes alcohol and some petroleum products. The&nbsp;<strong>VAT rate<\/strong>&nbsp;is different according to state and registration is mandatory for those companies that have an annual turnover (this also differs according to state, in most cases being over 500,000 INR).&nbsp;<\/p>\n\n\n\n<p>Please feel free to reach out to our&nbsp;<strong>taxation lawyers in India<\/strong>&nbsp;for more details about the taxes applicable to companies.<\/p>\n\n\n\n<p>Tax <strong>residency in India <\/strong>is an important matter to determine before being able to properly calculate the due taxes. Our team can offer complete guidance and assistance to individuals who have either spent more than 180 days in the country in a tax year or have not reached this period of stay. For companies, we answer questions concerning corporate residency in India and how it affects taxation.<\/p>\n\n\n\n<p>If you are interested in<strong>&nbsp;immigration to India<\/strong>, our team can also assist you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"tax-administration-in-india\"><\/span><strong>Tax administration in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Companies in India usually observe a&nbsp;<strong>tax year<\/strong>&nbsp;that begins on the first of April and ends on the 31st of March the following year. This is the fiscal year and the income tax is levied for this previous year, at the rates applicable during that period of time.<\/p>\n\n\n\n<p>The taxes payable on income in a given fiscal year are paid in the next fiscal year (also referred to as the assessment year). A company operating in India must submit the&nbsp;<strong>final tax return<\/strong>&nbsp;by September 30 (this term can differ for companies that also need to file a certificate for international transactions). The final tax return includes the income, expenses as well as the taxes that have been paid and those that are toe for the preceding year.<\/p>\n\n\n\n<p>Corporations that fail to comply with the terms for filing the tax returns, as well as those that fail to comply with the withholding tax obligations or those that misreport the income or do not file the certificate of international transactions, are subject to penalties.<\/p>\n\n\n\n<p>Our team of experienced&nbsp;<strong>taxation lawyers in India<\/strong>&nbsp;can help you understand the provisions set forth by the Income Tax Department and the&nbsp;<a href=\"https:\/\/aarrulings.in\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Authority for Advance Rulings<\/strong><\/a>.<\/p>\n\n\n\n<p>We can also give you details about taxation if you are interested in\u00a0<strong>immigration to India<\/strong>.<\/p>\n\n\n\n<p>If you are already living in India and are interested in how to apply for <strong>citizenship in India<\/strong>, our team can also answer questions about this process. The naturalization option is a common one for foreign nationals, and the one available if the applicant is not married to an Indian citizen. You can find out more about the requirements if you reach out to our team.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"individual-taxation-in-india\"><\/span><strong>Individual taxation in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Personal income tax rates in India&nbsp;<\/strong>are progressive up to 30% plus a surcharge when the income exceeds 5 million INR and 15% of the income exceeds 10 million INR. The first 250,000 INR is tax exempt and the same exemption applies to 500,000 INR for senior citizens. Individuals in India are considered residents for taxation purposes if they spend at least 182 days in the country in one year or at least 60 days if the individual has spent at least one full year in the country during the last four years. Individual tax returns are filed.<\/p>\n\n\n\n<p><strong>Corporate and personal taxation<\/strong>&nbsp;assistance in India is provided by the team at our&nbsp;<a href=\"https:\/\/www.lawyer-india.com\/about-us\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>law firm in India<\/strong><\/a>. Our attorneys who specialize in the Income Tax Act, the Customs Act as well as other relevant Acts and Laws can help answer any questions you might have as a foreign entrepreneur or employer.<\/p>\n\n\n\n<p>We can also answer questions about taxation in India for those who plan on relocating to the country. Foreign nationals who are interested in<strong> immigration to India<\/strong> can receive personalized information on how they will be taxed once they obtain a residence permit. We can also give you details about the treatment of your foreign-source income, if applicable.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.lawyer-india.com\/contact\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Contact our Indian law firm<\/strong><\/a>&nbsp;for complete assistance regarding taxation matters.<\/p>\n\n\n\n<p>Our immigration lawyers in India can also provide assistance in other matters.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Taxation in India&nbsp;is performed on a residency basis with resident companies being taxed on their worldwide income and non-resident corporations only on their Indian-sourced profits. The corporate income tax applies to a company\u2019s profits that include the business or trade income, the passive income as well as capital gains. For individuals, the tax applies to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":74,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[33,11,31,30,32],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Taxation Lawyers in India<\/title>\n<meta name=\"description\" content=\"Our taxation lawyers in India describe the main taxation principles for companies and for individuals and can assist you with further information on the taxation laws.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lawyer-india.com\/taxation-in-india\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" 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