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:

• http://www.worldwide-tax.com/india/india_tax.asp
• http://finance.indiamart.com/taxation/income_tax/
• http://en.wikipedia.org/wiki/Income_tax_in_India