Taxes in India 2026: tax rates, income tax slabs and GST
Five months in Goa every winter, and from the fourth season India treats the visitor as a tax resident, even though 182 days are never reached. A guide to 2026 rates under the new Income-tax Act, 2025: income tax, pension contributions for foreign nationals, corporate tax, GST, property, crypto and the treaty with Russia.
In 2026 India taxes individuals at 0 to 30% on a progressive scale and companies at 22-35%, and the standard rate of its Goods and Services Tax (GST) is 18%. A resident earning up to INR 1.2 million a year (about USD 12,500) pays no income tax, but foreign employees put 12% of basic pay into a provident fund they cannot touch until 58, and crypto is taxed at 30% with no offset for losses.
Tax rates in India in 2026: the short version
India replaced its entire income tax law in 2026: since 1 April 2026 the Income-tax Act, 2025 applies instead of the 1961 Act. The rates barely moved, but the old two-year confusion is gone: instead of a previous year and an assessment year there is now a single tax year running from 1 April to 31 March.
The headline for anyone relocating: personal income tax is progressive from 0 to 30%, and a resident earning up to INR 1.2 million a year (about USD 12,500) effectively pays nothing. The top end bites harder: with the surcharge and cess, the top rate under the new regime reaches 39%.
The rupee (INR) is India's currency; in 2026 one US dollar buys about 96 rupees. Indian documents often quote amounts in lakh (100,000 rupees) and crore (10 million rupees); below, everything is converted into millions.
| Tax | 2026 rate | Who pays and on what |
|---|---|---|
| Personal income tax, new regime | 0-30% | Individuals on income above INR 400,000 a year; a resident with income up to INR 1.2 million gets a rebate and pays nothing |
| Surcharge and cess | 10-25% of the tax + 4% | Surcharge on income above INR 5 million (about USD 52,000); the 4% health and education cess applies to everyone |
| EPF pension contributions | 12% + 12% | Employee and employer on basic pay; no cap for foreign nationals |
| Corporate income tax | 22-35% | 22% under the concessional regime (25.17% effective with surcharge and cess), 25% or 30% under the standard regime, 35% for foreign companies |
| Minimum Alternate Tax (MAT) | 14% | Standard-regime companies whose regular tax is below 14% of book profit; cut from 15% on 1 April 2026 |
| Dividends | slab / 20% / 10% | Residents at their slab rate; non-residents 20% withheld, 10% under the Russia treaty |
| GST (Goods and Services Tax, India's VAT) | 5%, 18%, 40% | Businesses with turnover above INR 4 million for goods or INR 2 million for services (lower in some states) |
| Capital gains on shares | 20% / 12.5% | 20% if held up to a year, 12.5% if held longer, above INR 125,000 a year |
| Capital gains on property and other assets | 12.5% / slab | 12.5% without indexation if held over 2 years, otherwise at slab rates |
| Crypto | 30% + 1% withheld | On any gain; losses cannot be set off |
| Stamp duty on buying a home | 4-6% + 1% | Buyer; set by each state: Delhi 6% for men and 4% for women, Mumbai 6% and 5%, plus registration of about 1% |
| Inheritance and wealth tax | none | Estate duty was abolished in 1985, wealth tax in 2015 |
Comparing India with its neighbours on the top rate alone is misleading. Salary up to INR 1.2 million is tax-free, and at INR 2.4 million a year (about USD 25,000) the effective burden is around 12%. It gets expensive above INR 5 million, when the surcharge kicks in. For comparison, the UAE has no personal income tax at all, while Sri Lanka and Thailand have top rates below India's 39%. Rates for other countries are collected on the page taxes around the world.
We will calculate online the tax on your income and show how to pay less legally.
Compare taxes in 146 countries: relocation taxes 2026
Who becomes a tax resident of India: 182 days and the 60-day rule
It is possible to become an Indian tax resident without ever spending 182 days in the country. The law has two tests, and the second one catches exactly those who come back every year for the winter season.
| Test | Condition | Who it applies to |
|---|---|---|
| Main test | 182 days or more in India during the tax year (1 April - 31 March) | Everyone |
| 60-day rule | 60 days or more in the tax year and 365 days or more in the 4 preceding years combined | Foreign nationals; for Indian citizens and persons of Indian origin the 60 days is replaced by 120 or 182 days |
| Deemed resident | Indian income above INR 1.5 million and no tax residence anywhere else | Indian citizens only |
Physical presence is what counts, and in practice both the day of arrival and the day of departure are included. The tax year does not match the calendar year, so a winter from November to March falls entirely into one tax year.
Example calculation: five months in Goa every winter
A Russian citizen spends 150 days in Goa each year, from November to March. For the first three seasons he is a non-resident: 150 days is below 182, and the preceding years add up to less than 365 days. By the fourth season he has 450 days over 4 years, and the 60-day rule makes him an Indian resident.
An intermediate status softens the blow. A resident who was a non-resident in 9 of the 10 preceding years, or spent no more than 729 days in India over the 7 preceding years, is an RNOR (Resident but Not Ordinarily Resident). An RNOR pays tax only on Indian income and on income from a business controlled from India. In our example RNOR status lasts two seasons, and from the sixth season he becomes a full resident who must declare worldwide income and foreign accounts.
| Status | What India taxes | Foreign assets in the return |
|---|---|---|
| Non-resident (NR) | Indian-source income only | Not required |
| RNOR | Indian income and income from a business or profession controlled from India | Not required |
| Resident and ordinarily resident (ROR) | Worldwide income | Mandatory, in the foreign assets schedule (Schedule FA) |
A foreign national who moves to India for the long term usually stays RNOR for the first two tax years, sometimes three. That window is useful for selling foreign assets and restructuring income before India starts taxing the whole world.
A detail that is often missed: under Indian law, salary for work physically performed in India is Indian income even when a foreign employer pays it into a foreign account. The treaty with Russia protects against double tax, as explained below. General rules for counting days in different countries are covered in the article tax residency and the 183-day rule.
India tax residency rules: how to count days and confirm your status
You can become a tax resident of India with 60 days in a year if the previous four years add up to 365 days in the country. That is the rule of section 6 of the new Income-tax Act, 2025, in force from 1 April 2026. It catches fans of the Indian winter: five months in Goa every year turn a tourist into a taxpayer by the fourth season.
The main threshold is 182 days in the tax year from 1 April to 31 March, so a November-to-March winter falls entirely into one year. Indian citizens and people of Indian origin get 120 or 182 days instead of 60. New residents pay mostly on Indian income for the first years.
The law does not stop you from confirming the status on your own. But mistakes cost more: the 60-day rule kicks in quietly, and 0-30% tax lands on worldwide income. Murblz support removes these risks: we count days over five years, check the interim status for new residents, obtain the residency certificate and apply the double tax treaty with your country. We guarantee professional work and a transparent process, and in most cases a result on the first filing.
183-day calculator
Tax residency calculator for India
Enter your travel dates: the calculator shows whether you are a tax resident of India today and at year end, and how many days are left before the threshold.
Counting by dates needs JavaScript. Below are the same rules by country.
Income tax in India in 2026: new and old regime slabs
India has two personal income tax regimes, and taxpayers choose between them every year. The new regime, with low rates and almost no deductions, is the default; the old regime, with higher rates and dozens of deductions, has to be chosen explicitly.
| Annual income, INR | New regime | Annual income, INR | Old regime |
|---|---|---|---|
| up to 400,000 | 0% | up to 250,000 | 0% |
| 400,000-800,000 | 5% | 250,000-500,000 | 5% |
| 0.8-1.2 million | 10% | 0.5-1 million | 20% |
| 1.2-1.6 million | 15% | above 1 million | 30% |
| 1.6-2 million | 20% | ||
| 2-2.4 million | 25% | ||
| above 2.4 million (about USD 25,000) | 30% |
The scale is progressive: each rate applies only to its own slice of income. A 4% Health and Education Cess is added on top of the tax.
Who pays nothing
A resident with taxable income up to INR 1.2 million a year gets a rebate of up to INR 60,000, which wipes out the tax. Employees also get a standard deduction of INR 75,000, so a salary up to INR 1.275 million a year (about USD 13,300) is tax-free. Under the old regime the rebate only works up to INR 500,000 of income, and the standard deduction is INR 50,000.
The rebate is for residents only. A non-resident with the same Indian income pays tax at slab rates on every rupee above INR 400,000.
Surcharge on high incomes
| Taxable income, INR | Surcharge on tax | Top rate with surcharge and cess |
|---|---|---|
| 5-10 million (about USD 52,000-104,000) | 10% | 34.32% |
| 10-20 million | 15% | 35.88% |
| above 20 million (about USD 208,000); the cap under the new regime | 25% | 39% |
| above 50 million, old regime only | 37% | 42.74% |
The surcharge on capital gains from shares and on dividends is capped at 15%, so the wealthiest pay less on investment income than on salary.
Which regime is cheaper
The old regime makes sense when deductions are large: pension and insurance products up to INR 150,000 a year, mortgage interest, an employer's housing rent allowance, health insurance. A foreign national who rents without such an allowance and buys no Indian insurance products usually has few deductions, and the new regime is almost always cheaper. Employees can switch regimes every year, while a business owner who leaves the new regime can return to it only once.
How much tax is deducted from a salary in India: example and pension contributions
On a salary of INR 2.4 million a year (about USD 25,000, or INR 200,000 a month), income tax under the new regime comes to about 12%. But a foreign national from a country without a social security agreement with India, Russia included, also pays 12% into the provident fund and can only get that money back at 58.
Example calculation: salary of INR 2.4 million a year, new regime
| Step | Amount per year |
|---|---|
| Gross salary | INR 2,400,000 |
| Standard deduction | INR 75,000 |
| Taxable income | INR 2,325,000 |
| Tax by slab: 20,000 + 40,000 + 60,000 + 80,000 + 81,250 | INR 281,250 |
| Cess 4% | INR 11,250 |
| Total income tax | INR 292,500 (about USD 3,050) |
| Employee EPF contribution, 12% of INR 1.2 million basic pay (half the salary) | INR 144,000 |
| Take-home pay | INR 1,963,500, about INR 163,600 a month |
Tax is 12.2% of salary; together with the pension contribution, 18.2% of pay is deducted. Under the old regime, even with the maximum INR 150,000 deduction, tax on the same salary would be about INR 491,000, almost 1.7 times more. The calculation ignores the state professional tax, covered below.
Pension contributions: EPF and others
The main mandatory contribution goes to the Employees' Provident Fund (EPF), run by the state body EPFO. Since 21 November 2025 it operates under the Code on Social Security, 2020, one of India's four new labour codes.
| Contribution | Employee | Employer | Base |
|---|---|---|---|
| EPF (provident fund) | 12% | 12%, part of it (8.33% of pay up to INR 15,000 a month) goes to the EPS pension scheme | Basic pay and dearness allowance; no cap for foreign nationals |
| EDLI death-in-service insurance | - | 0.5% | On pay up to INR 15,000 a month |
| ESI state health insurance | 0.75% | 3.25% | Only if pay is up to INR 21,000 a month (about USD 220) |
| State professional tax | up to INR 2,500 a year | - | In some states, for example Maharashtra and Karnataka |
EPF is mandatory for establishments with 20 or more employees. Since November 2025 the base can no longer be artificially lowered: if payments excluded from the base (allowances, bonuses) exceed 50% of total pay, the excess is added back to the base.
Why contributions cost foreign nationals more
A foreign national on an Indian payroll is an international worker. He or she contributes 12% of full pay with no cap. If the home country has a social security agreement with India, the worker can be exempted with a detachment certificate or withdraw the money on leaving.
There are about twenty such agreements: with Germany, France, the Netherlands, Switzerland, Japan, South Korea, Canada, Australia and others, and the UK joined the list in 2026. Russia, Ukraine and Kazakhstan are not on it. For them the EPFO rule applies: money is paid out only after age 58 and leaving employment, and savings stay in the fund when the worker leaves India.
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Corporate tax and dividend tax in India
An Indian private company can pay 25.17% on profit instead of 30-35% if it gives up most incentives. This concessional regime appeared in 2019, and for a new foreign-owned business it almost always beats the standard one.
| Who pays | Base rate | With surcharge and 4% cess |
|---|---|---|
| Indian company, concessional regime (former section 115BAA) | 22% | 25.17%, surcharge always 10% |
| Indian company, standard regime, turnover up to INR 4 billion (about USD 42 million) | 25% | 26-29.12% |
| Other Indian companies, standard regime | 30% | 31.2-34.94% |
| Limited liability partnership (LLP) | 30% | 31.2-34.94% |
| Foreign company through a branch or permanent establishment | 35% | 36.4-38.22% |
| Minimum Alternate Tax (MAT), standard regime | 14% of book profit | 14.56-16.31% |
The surcharge under the standard regime depends on profit: 7% on income above INR 10 million (about USD 104,000) and 12% above INR 100 million. Foreign companies pay a lower surcharge, 2% and 5%.
The 22% regime takes away tax holidays and accelerated depreciation but exempts the company from MAT (Minimum Alternate Tax). MAT is paid by standard-regime companies when their regular tax falls below 14% of book profit. From 1 April 2026 the MAT rate was cut from 15% to 14%, but new MAT credit no longer accumulates for future years: the tax becomes final.
The 15% rate for new manufacturers is closed to companies that started production after 31 March 2024.
Tax on dividends
Since 2020 companies no longer pay a separate distribution tax; dividends are taxed in the hands of the recipient. A resident adds them to income and pays at slab rates, and the company withholds 10% in advance if dividends exceed INR 10,000 a year. From 2026, interest on loans taken to buy shares can no longer be deducted from dividends.
For non-residents the company withholds 20% plus surcharge and cess. Treaties lower the rate: 10% for residents of Russia, Kazakhstan, Uzbekistan, Armenia and Georgia. So profit of a concessional-regime Indian company paid out as dividends to a Russian-resident owner bears roughly 32.7% in total: 25.17% on profit and 10% on the remainder.
Share buybacks
From 1 April 2026 buyback proceeds are again taxed as capital gains rather than dividends: tax applies only to the shareholder's actual profit. Founders and controlling shareholders (promoters) face an additional tax, bringing their total burden to 22% for companies and 30% for individuals.
How to set up a company
A Private Limited Company needs at least two directors, and one of them must stay in India for at least 182 days during the financial year (1 April to 31 March). Foreign investment is allowed in most sectors without prior approval. Registration, including a package with nominee services, is handled by Murblz specialists: company formation in India, with an overview of jurisdictions on the page company formation abroad. Day-to-day payments need a local bank account: business accounts in India.
GST in India: rates of the Goods and Services Tax and the registration threshold
On 22 September 2025 India simplified its main consumption tax: four rates of 5, 12, 18 and 28% plus a compensation cess gave way to two main rates, 5% and 18%, and a 40% rate for luxury and harmful goods. The reform is known as GST 2.0.
GST (Goods and Services Tax) works like VAT: the seller charges tax on the price and deducts the tax paid to suppliers. Within a state the tax is split equally between the centre and the state (for example 9% + 9%); on sales to another state a single integrated tax of 18% applies.
| Rate | What it covers |
|---|---|
| 0% | Fresh food, some essentials, individual life and health insurance policies (since 22 September 2025) |
| 5% | Packaged food, most medicines, everyday goods, electric vehicles, restaurants |
| 18% | Standard rate: most services including IT and consulting, electronics, small cars (petrol up to 1,200 cc, diesel up to 1,500 cc, length up to 4 m) |
| 40% | Larger cars and SUVs, motorcycles above 350 cc, yachts, private aircraft, tobacco |
| 3% | Gold and jewellery |
| 0% on exports | Exports of goods and services, including IT services to foreign clients paid in foreign currency |
When to register
| Situation | Annual turnover threshold |
|---|---|
| Sale of goods, most states | INR 4 million (about USD 42,000) |
| Services, most states | INR 2 million (about USD 21,000) |
| Special category states (some north-eastern and hill states) | lower, from INR 1 million |
| Sale of goods to another state, selling through marketplaces | registration from the first rupee |
| Foreign company selling online services to private individuals in India | registration from the first rupee, rate 18% |
Exports count towards turnover, so a freelancer working only for foreign clients also crosses the INR 2 million threshold. To avoid paying tax on exports and waiting for a refund, the freelancer files a Letter of Undertaking (LUT) once a year.
Simplified scheme for small business
A company or sole proprietor with turnover up to INR 15 million (about USD 156,000) can opt for the composition scheme: 1% of turnover for trading and manufacturing, 5% for restaurants, 6% for services with turnover up to INR 5 million. The price of simplicity: no input tax credit and no sales to other states.
Reporting is monthly: a return of outward supplies by the 11th and a summary return with payment by the 20th of the following month. Businesses with turnover up to INR 50 million can report quarterly, and the annual return is due by 31 December.
GST on housing and rent
An apartment in a building under construction carries 5% GST without input credit (1% for affordable housing). Completed housing with an occupancy certificate is not subject to GST. Residential rent for living is exempt, but if the tenant is a GST-registered business, it pays 18% itself under the reverse charge mechanism.
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Taxes for sole proprietors, freelancers, startups and expats in India
A resident freelancer in India can pay about 3.6% of revenue without keeping full books. This works through presumptive taxation: the law deems a fixed share of revenue to be profit, and tax is charged at the normal slab rates.
India has no separate sole-trader registration of the Russian type. A sole proprietorship is simply the owner with a Permanent Account Number (PAN, the tax ID): business income is added to other income and taxed at the owner's slab rates.
| Scheme | Who it suits | Annual revenue limit | Deemed profit |
|---|---|---|---|
| Presumptive income for business (former section 44AD) | Trading, small manufacturing, contracting; individuals and ordinary partnerships, not LLPs or companies | INR 20 million, INR 30 million if cash is up to 5% | 8% of revenue, 6% of digital receipts |
| Presumptive income for professions (former section 44ADA) | Legal, medical, engineering, architectural, accounting and technical consulting, interior design, IT and other listed professions | INR 5 million, INR 7.5 million if cash is up to 5% | 50% of revenue |
Both schemes are open to residents only. A non-resident working for Indian clients computes profit on actual expenses or bears withholding tax.
Example calculation: IT freelancer with revenue of INR 3 million
Revenue is INR 3 million (about USD 31,000), all received by bank transfer. Deemed profit is 50%, or INR 1.5 million. Tax under the new regime: 20,000 + 40,000 + 45,000 = INR 105,000, plus 4% cess makes INR 109,200. That is 3.6% of revenue. No GST is paid on exports of services under an LUT, but registration is required because revenue exceeds INR 2 million.
Startups and the GIFT City financial centre
A startup recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) can skip profit tax for 3 consecutive years out of its first 10 if it is incorporated before 1 April 2030 and turnover does not exceed INR 1 billion. The benefit is not automatic: it requires separate approval from an inter-ministerial board.
Companies in the International Financial Services Centre (IFSC) at GIFT City in Gujarat get a tax holiday, which Budget 2026 extended from 10 to 20 years. The regime is designed for banks, funds, insurers and leasing companies, not for ordinary small businesses.
Expats and assignees
A foreign national who works in India for a foreign employer for fewer than 90 days a year pays no Indian tax on that salary if the employer does not do business in India and does not charge the salary to Indian expenses. For Russian tax residents the treaty gives a longer period of 183 days in any 12 months, provided the employer is not an Indian resident and the salary is not borne by its Indian establishment.
Budget 2026 added one more relief: the foreign income of foreign experts invited under government programmes is exempt for 5 years. It does not apply to an ordinary relocation.
Digital nomads
India has no dedicated remote-work visa. The e-Tourist Visa does not permit work, and the tax rules apply regardless of the visa: days in the country are counted the same way for a tourist and an employee.
Property tax, capital gains, crypto and inheritance in India
A foreign national without Indian residence cannot buy property in India at all. The Foreign Exchange Management Act (FEMA) allows purchases only by a foreign national who lives in the country: someone who spent more than 182 days in India in the preceding financial year and came to work, do business or stay for an indefinite period. A non-resident can only lease for up to 5 years.
Even residents cannot buy agricultural land, plantations or farmhouses. Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan need separate permission from the Reserve Bank of India (RBI). Overseas Citizens of India (OCI) can buy homes and commercial property freely.
Taxes on buying, owning and selling a home
On purchase the buyer pays stamp duty and a registration fee. Rates are set by each state: in Delhi 6% for men, 4% for women and 5% for joint ownership, plus 1% registration; in Mumbai 6% for men and 5% for women including a 1% metro cess, with registration at 1% capped at INR 30,000. The annual property tax is levied by the municipality, and each city calculates it differently.
Rental income is taxed at slab rates, but not in full: municipal tax paid is deducted from the rent, and 30% of the remainder is deducted for upkeep. A tenant paying rent to a non-resident must withhold tax at source.
Capital gains
| Asset | Short-term holding | Long-term holding |
|---|---|---|
| Shares listed in India and equity funds | up to 12 months: 20% | over 12 months: 12.5% above INR 125,000 (about USD 1,300) a year |
| Property, gold, unlisted shares | up to 24 months: slab rates | over 24 months: 12.5% without indexation |
| Homes and land bought by a resident before 23 July 2024 | slab rates | choice of 12.5% without indexation or 20% with inflation indexation |
| Debt funds bought after 1 April 2023 | slab rates | slab rates |
| Crypto | 30% | 30% |
Gains on selling a home are exempt if reinvested in time in another home in India, up to INR 100 million. From 1 April 2026 the Securities Transaction Tax (STT) on exchange trades went up: on futures from 0.02% to 0.05%, on options to 0.15%.
Crypto
India taxes crypto at one of the harshest rates in the world: 30% plus 4% cess on any gain, only the purchase price can be deducted, and losses cannot be set off against other gains or carried forward. 1% is withheld at source on every sale. Budget 2026 left the rate unchanged but introduced penalties for exchanges and intermediaries that misreport transactions. Where crypto income goes untaxed is covered in the article crypto and relocation.
Inheritance, gifts and cars
India has no inheritance tax and no wealth tax. Gifts from relatives and property received under a will are not taxed, while gifts from non-relatives worth more than INR 50,000 in a year are added to the recipient's income and taxed at slab rates.
Private cars usually carry no annual road tax of the Russian type. On purchase the buyer pays GST: 18% on a small car, 40% on a larger car or SUV, 5% on an electric vehicle. On top of that the state charges a one-time road tax at registration, which depends on the state and the price of the car.
Non-resident taxation and the India-Russia double tax treaty
The double tax treaty between Russia and India is in force and can be used in 2026. It was signed in Moscow on 25 March 1997 and entered into force on 11 April 1998. Decree No. 585 of 8 August 2023, by which Russia suspended its treaties with unfriendly states, did not affect India: it is not on that list.
How non-residents are taxed
A non-resident pays Indian tax only on Indian income: salary for work in the country, rent from Indian property, dividends and interest from Indian companies, and capital gains on Indian assets. The slab rates are the same as for residents, but there is no rebate that zeroes the tax up to INR 1.2 million.
Most of a non-resident's tax is withheld by the payer: 20% on dividends, interest, royalties and fees for technical services, plus surcharge and cess. A buyer of property from a non-resident withholds tax on the gain, a tenant on the rent. A non-resident whose only income is dividends or interest with 20% withheld does not have to file a return. The equalisation levy on foreign online businesses has been abolished: the 2% levy from 1 August 2024, the 6% levy on online advertising from 1 April 2025.
Treaty rates
| Recipient's country | Dividends | Interest | Royalties and technical services |
|---|---|---|---|
| Russia | 10% | 10% | 10% |
| Ukraine | 10% for a company holding 25%+, otherwise 15% | 10% | 10% |
| Kazakhstan | 10% | 10% | 10% |
| Uzbekistan | 10% | 10% | 10% |
| Kyrgyzstan | 10% | 10% | 15% |
| Belarus | 10% for a company holding 25%+, otherwise 15% | 10% | 15% |
| Armenia and Georgia | 10% | 10% | 10% |
| UAE | 10% | 5% for banks and financial institutions, otherwise 12.5% | 10% on royalties; no separate article on technical services |
| Cyprus | 10% | 10% | 10% |
| No treaty | 20% | 20% | 20% |
In total India has around a hundred tax treaties. To claim a reduced rate, a tax residency certificate from the home country, the electronic Form 10F and an Indian PAN are required; without a PAN, tax is withheld at a higher rate.
What the treaty with Russia gives
Tax paid in India is credited in Russia and vice versa, but only up to the tax that would be due in the crediting country. If tax residence arises in both countries, the tie is broken in order: permanent home, centre of vital interests, habitual abode, citizenship.
Salary for work in India is taxed in India if the employee spent more than 183 days there in 12 months or the employer is Indian. Income from independent professional services is taxed in India if there is a fixed base there or a stay of more than 183 days. Owners of an Indian company who remain Russian tax residents must file controlled foreign company notifications: CFC filings.
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Three questions in the chat show where you are tax resident.
When to file a tax return in India: deadlines and penalties
The costliest penalty in the Indian tax system is not for unpaid tax but for a forgotten foreign account: INR 1 million (about USD 10,400) for each year in which a full resident failed to report foreign assets in the return. It comes from the Black Money (Undisclosed Foreign Income and Assets) Act, 2015; since 2024 it does not apply if the total value of foreign assets other than real estate does not exceed INR 2 million.
| What | Deadline |
|---|---|
| Tax year | 1 April - 31 March |
| Advance tax, if annual tax exceeds INR 10,000 | 15 June - 15%, 15 September - 45%, 15 December - 75%, 15 March - 100% |
| Return without business income: salary, rent, investments | 31 July |
| Return with business or professional income, no audit, including presumptive income | 31 August (from 2026, previously 31 July) |
| Business requiring an audit, companies | 31 October |
| International transactions with related parties (transfer pricing) | 30 November |
| Revised return | by 31 March of the following year (was 9 months, now 12) |
| Payment of tax withheld by the employer | by the 7th of the following month |
The Income Tax Return (ITR) is filed online only, on the tax department's portal, and requires a PAN. The employer issues a certificate of tax withheld but does not file the return for the employee: that is the employee's own obligation if income exceeds the tax-free threshold.
Penalties
| Breach | Sanction |
|---|---|
| Late return | INR 5,000, or INR 1,000 if income is up to INR 500,000 |
| Unpaid or late tax and advance tax | 1% a month on the amount due |
| Under-reporting of income | 50% of the tax underpaid |
| Misreporting of income | 200% of the tax underpaid |
| Foreign assets not reported by a full resident | INR 1 million per year |
Budget 2026 softened the criminal side: a number of offences were decriminalised, and the maximum prison term for failing to pay over withheld tax was cut from 7 to 2 years. For those who have already missed foreign assets, a one-time voluntary disclosure programme for small taxpayers opened in 2026 (Foreign Assets of Small Taxpayers - Disclosure Scheme, 2026) with reduced sanctions.
What India's taxes mean for people relocating: who they suit and who they do not
India is gentle on middle salaries and small businesses but tough on capital and crypto. For an IT specialist earning INR 2-3 million a year the burden is lower than in many European countries; for an investor with a portfolio abroad, once RNOR status ends, interest and other slab-rate income is taxed at up to 39%.
| Situation | Outcome in India |
|---|---|
| Salary at an Indian company up to INR 1.275 million a year | Zero income tax, but 12% goes to EPF |
| Resident freelancer with foreign clients, revenue up to INR 7.5 million | 50% of revenue deemed profit; tax 0 on revenue up to INR 2.4 million and about 10% at INR 7.5 million; no GST on exported services |
| Wintering 150 days a year | Residence from the fourth season, worldwide income from the sixth |
| Large foreign portfolio of shares and deposits | First 2-3 years as RNOR with no tax on foreign income, then interest at slab rates up to 39%, gains from 12.5% and mandatory reporting of foreign assets |
| Crypto trading | 30% on gains, 1% on every sale, losses wasted |
| Buying an apartment without Indian residence | Not possible, only a lease of up to 5 years |
Who India's taxes do not suit
Crypto traders: even with a zero net result for the year, tax is due on the profitable trades. Employees with a passport from a country without a social security agreement who come for 2-3 years: 24% of basic pay (employee and employer shares) stays in the fund until 58. Owners of foreign businesses and portfolios who are not prepared to disclose their accounts: after RNOR status ends, disclosure is mandatory.
What to do before moving
Count days by tax year from April to March, not by calendar year, and work out in advance when residence starts and when RNOR status ends. Sell foreign assets with large gains before RNOR ends. Obtain a PAN, choose the income tax regime and get a Russian tax residency certificate for the years when the 10% treaty rate is needed.
If the goal is low taxes while living in Asia, India is worth comparing with Indonesia, Thailand and the UAE. If the decision is already made, the guide best places in New Delhi covers life in the capital. Murblz specialists build the tax model for specific income, and in disputes with the tax department support is provided by Murblz specialists together with locally licensed partners.
FAQ
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Services
Murblz services in India
The tax rate is only half the picture. The other half is where the company sits, where the money is held and who files the accounts. Murblz specialists help with that in the same country. The quote is fixed in writing before work starts.
See also
Related programs and destinations
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The same program in other countries:
Articles about India
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