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India

There is no separate tax structure for expatriates in India, and expatriates who qualify as residents will have to pay income tax at the same rate as Indians. The tax liability of an expat depends on the individual's residential status. If you are a full-time resident of India, you will have to pay your worldwide income tax in India. If you are resident in India, but not an ordinary resident, you will still need to pay tax on all income in India. However if your home country happens to be one with which India has entered into a Double Taxation Avoidance Agreement (DTAA), the residency aspect may be resolved under the tie-breaker clauses of the relevant DTAA. For a list of countries that come under the double taxation agreement, see the Income Tax of India website http://incometaxindia.gov.in.

The Indian tax year starts on 1st April and ends on 31st March of the succeeding year. Individuals are taxed on a graduated scale after certain deductions and allowances:

  • Up to Rs 200,000 - NIL
  • Rs 200,001 to Rs 500,000 - tax rate: 10%
  • Rs 500,001 to Rs 1,000,000 - tax rate: 20%
  • Above Rs 1,000,000 - tax rate: 30%

A foreign national having income other than salary income taxable in India, is required to pay advance tax in three installments - on or before September 15, on or before December 15, and on or before March 15.

Typically, your employer should, by law, deduct the tax payable on your monthly salary check and deposit the tax amount with the government every month. This is referred to as Tax Deducted at Source (TDS). Your monthly salary slips, or any payments made to by the compa…

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