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Tax system


The tax year in India begins on April 1st and ends on March 31st. The tax in India on an individual's income is progressive.

For the financial year 2008-2009, an individual's income is taxed progressively at 10% - 30%. A 10% surcharge is imposed on the tax, subject to legally specified limits and an education tax (CESS) of 3%. In 2008-2009, there is a 30% tax for a local company and 40% tax for a foreign company with an additional surcharge (for income above INR 10 millions, 10% for domestic companies, 2.5% for foreign companies) as well as an education tax (CESS) of 3%. The top effective tax rate in India is 33.99% for a local company and 42.23 % for a foreign company.

For more detailed information on taxes in India, click on the following links:


10/03/2009

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