Asia-Pacific

India

Corporate rate
25%
Top personal rate
39%
VAT / GST rate
5%
One-sentence summary India's corporate tax position: 25% or 30% domestic (turnover-dependent); 35% foreign companies with PE. Personal income tax: 39% new regime; 42.744% old regime (top). VAT/consumption tax: 5-28 (GST, general rate 18).

Corporate Tax Rate

India's headline corporate income tax (CIT) rate is 25% or 30% domestic (turnover-dependent); 35% foreign companies with PE.

Personal Tax Rate

The headline personal income tax (PIT) rate is 39% new regime; 42.744% old regime (top).

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 5-28 (GST, general rate 18). Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

Under Section 6 of the Income Tax Act (re-enacted as the Income Tax Act, 2025, with residency rules unchanged from the prior 1961 Act), an individual is an Indian tax resident if they are present in India for 182 days or more in the tax year, or 60 days or more in the tax year plus 365 days or more across the preceding four years (extended to 182 days for Indian citizens/crew leaving for employment abroad, and to 120 days for citizens or persons of Indian origin visiting India with India-sourced income exceeding INR 1.5 million). A resident is further classified as "Not Ordinarily Resident" (RNOR) - taxed only on India-sourced income plus limited foreign income - unless they meet stricter "Ordinarily Resident" tests (resident in at least 2 of the preceding 10 years, and present 730+ days across the preceding 7 years). Non-residents are taxed only on India-sourced income.

CFC Rules

India currently has no Controlled Foreign Company regime. Undistributed profits of a foreign subsidiary controlled by Indian residents are not automatically attributed to Indian shareholders under a CFC-style rule; India instead relies on transfer pricing rules and the General Anti-Avoidance Rule (GAAR, in effect since assessment year 2018-19) to address profit-shifting arrangements.

Thin Capitalization / Interest Limitation

Section 94B of the Income Tax Act (introduced by the Finance Act 2017, implementing OECD BEPS Action 4) caps deductible interest paid by an Indian company or the Indian permanent establishment of a foreign company to a non-resident associated enterprise at the lower of 30% of EBITDA or the actual interest paid to associated enterprises. The rule applies only where such interest exceeds INR 1 crore (10 million) in the year; banking and insurance businesses are excluded, and disallowed interest may be carried forward up to eight assessment years.

Treaty Network

India has concluded roughly 94 comprehensive Double Taxation Avoidance Agreements (DTAAs) plus a further eight limited-scope agreements, one of the largest treaty networks among emerging economies. India ratified the OECD's BEPS Multilateral Instrument (MLI) effective October 1, 2019, which modifies many of these treaties to add anti-abuse measures such as the Principal Purpose Test.

Source: PwC Worldwide Tax Summaries - India (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 11 May 2026. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.