India
Southern Asia · IN · 97 treaties
What is the tax system in India?
India operates a worldwide tax system. The top personal income tax rate is 39%.
Tax profile
| Corporate income tax | 25% |
| Withholding — dividends | 10% |
| Withholding — interest | 20% |
| Withholding — royalties | 10% |
| VAT / GST (standard) | 18% |
| Personal income (top rate) | 39% |
| Capital gains | 12.5% |
| Tax system | Worldwide |
| Residency threshold | 182 days |
| Exit / departure tax | No |
| CFC rules | No |
| Transfer pricing | Strict |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | Implemented |
Common questions
- What are the main tax rates in India?
- The top personal income tax rate in India is 39%, corporate tax is 25%, and capital gains tax is 12.5%. VAT is 18%.
- How is cryptocurrency taxed in India?
- Cryptocurrency is taxed as a special class. The headline rate is 30%, and long-term gains are not exempt.
- What is the tax residency requirement in India?
- Tax residency in India is established after 182 days. The residency classification is considered hard.
Tax residency
ModerateWhat makes you a tax resident — and how hard it is to stop being one.
- Physically present in India for 182 days or more in the relevant financial year (Section 6(1)(a) IT Act)
- Physically present in India for 60 days or more in the relevant financial year AND 365 days or more during the 4 financial years immediately preceding that year (Section 6(1)(c) IT Act)
- For Indian citizens or persons of Indian origin coming on a visit to India: 60‑day test above is relaxed to 120 days where total income (other than foreign‑source income) exceeds INR 15 lakh in the year (Finance Act 2020 proviso to Section 6)[7]
- Indian citizen deemed resident if total income (other than foreign‑source income) exceeds INR 15 lakh in the year AND the individual is not liable to tax in any other country by reason of domicile, residence or similar criteria (Section 6(1A) ‘deemed resident’)[7]
- Resident but not ordinarily resident (RNOR) and resident and ordinarily resident (ROR) sub‑tests apply only after basic residence is met, based on number of years resident and days of stay in prior years (tail tests for scope of taxation)[2][4]
India uses day‑count and a specific deemed‑resident rule; you generally cease residency by reducing Indian presence below the thresholds and ensuring you are tax‑liable elsewhere, but Indian citizens with high Indian‑source income can still be deemed residents if not taxed abroad.
Source: Income Tax Department, Government of India
Tax treaty network (98)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Albania | 10% | 10% | 10% |
| Armenia | 10% | 10% | 10% |
| Australia | 15% | 15% | 15% |
| Austria | 10% | 10% | 10% |
| Bangladesh | 15% | 10% | 10% |
| Belarus | 15% | 10% | 15% |
| Belgium | 15% | 15% | 10% |
| Bosnia and Herzegovina | — | — | — |
| Bulgaria | 15% | 15% | 20% |
| Cambodia | — | — | — |
| Canada | 25% | 15% | 15% |
| China | 10% | 10% | 10% |
| Cyprus | 10% | 10% | 10% |
| Czechia | 10% | 10% | 10% |
| Denmark | 25% | 15% | 20% |
| Egypt | — | — | — |
| Estonia | 10% | 10% | 10% |
| Ethiopia | 7.5% | 10% | 10% |
| Finland | 10% | 10% | 10% |
| France | 10% | 15% | 10% |
| Georgia | 10% | 10% | 10% |
| Germany | 10% | 10% | 10% |
| Greece | — | — | — |
| Hong Kong S.A.R. | 5% | 10% | 10% |
| Hungary | 10% | 10% | 10% |
| Iceland | 10% | 10% | 10% |
| Indonesia | 10% | 10% | 10% |
| Ireland | 10% | 10% | 10% |
| Israel | 10% | 10% | 10% |
| Italy | 25% | 15% | 20% |
| Japan | 10% | 10% | 10% |
| Jordan | 10% | 10% | 20% |
| Kazakhstan | 10% | 10% | 10% |
| Kenya | 10% | 10% | 10% |
| South Korea | 15% | 10% | 10% |
| Kyrgyzstan | 10% | 10% | 15% |
| Latvia | 10% | 10% | 10% |
| Lithuania | 15% | 10% | 10% |
| Luxembourg | 10% | 10% | 10% |
| North Macedonia | 10% | 10% | 10% |
| Malaysia | 5% | 10% | 10% |
| Malta | 10% | 10% | 10% |
| Mauritius | 15% | 7.5% | 15% |
| Mexico | 10% | 10% | 10% |
| Mongolia | 15% | 15% | 15% |
| Montenegro | 15% | 10% | 10% |
| Morocco | 10% | 10% | 10% |
| Mozambique | 7.5% | 10% | 10% |
| Myanmar | 5% | 10% | 10% |
| Namibia | 10% | 10% | 10% |
| Nepal | 10% | 10% | 15% |
| Netherlands | 10% | 10% | 10% |
| New Zealand | 15% | 10% | 10% |
| Norway | 10% | 10% | 10% |
| Oman | 12.5% | 10% | 10% |
| Philippines | 20% | 15% | 15% |
| Poland | 10% | 10% | 15% |
| Portugal | 15% | 10% | 10% |
| Qatar | 10% | 10% | 10% |
| Romania | 10% | 10% | 10% |
| Russia | 10% | 10% | 10% |
| Republic of Serbia | 15% | 10% | 10% |
| Saudi Arabia | 5% | 10% | 10% |
| Singapore | 15% | 15% | 10% |
| Slovakia | 25% | 15% | 30% |
| Slovenia | 15% | 10% | 10% |
| South Africa | 10% | 10% | 10% |
| Spain | 15% | 15% | 10% |
| Sri Lanka | 7.5% | 10% | 10% |
| Sweden | 10% | 10% | 10% |
| Switzerland | 10% | 10% | 10% |
| Syria | 10% | 10% | 10% |
| Tajikistan | 10% | 10% | 10% |
| United Republic of Tanzania | 10% | 10% | 10% |
| Thailand | 10% | 10% | 10% |
| Trinidad and Tobago | 10% | 10% | 10% |
| Turkey | 15% | 15% | 15% |
| Turkmenistan | 10% | 10% | 10% |
| Uganda | 10% | 10% | 10% |
| United Arab Emirates | 10% | 12.5% | 10% |
| United Kingdom | 15% | 15% | 15% |
| United States of America | 25% | 15% | 15% |
| Uruguay | 5% | 10% | 10% |
| Uzbekistan | 10% | 10% | 10% |
| Vietnam | 10% | 10% | 10% |
| Zambia | 15% | 10% | 10% |
| Bhutan | 10% | 10% | 10% |
| Botswana | 10% | 10% | 10% |
| Brazil | 15% | 15% | 25% |
| Taiwan | 12.5% | 10% | 10% |
| Colombia | 5% | 10% | 10% |
| Croatia | 15% | 10% | 10% |
| Fiji | 5% | 10% | 10% |
| Iran | 10% | 10% | 10% |
| Kuwait | 10% | 10% | 10% |
| Libya | — | — | — |
| Sudan | 10% | 10% | 10% |
| Ukraine | 15% | 10% | 10% |