Forex

The standard corporate income tax rates are 45 percent for public companies, 65 percent for branches of foreign companies and 50 percent for all other companies. If companies utilize tax incentives available to them, the typical rates vary between 30 and 50 percent. The tax rates are lowest for widely held companies incorporated in India. Companies are strongly encouraged to employ a tax specialist familiar with the Indian tax structure. A 25 percent tax is levied on dividends paid to non-resident corporate bodies, with a minimum 30 percent tax being applied if the non-resident is not a corporation. Interest is taxed at a rate of 25 percent, with a 3.125 percent surcharge. Royalties are taxed at a rate of 30 percent.

Personal Income Taxes.
A resident of India is considered to be an individual who spends at least 183 days in India during a given year. Residents are taxed on a progressive sale ranging from 20 to 30 percent on their worldwide income. Non-residents are taxed only on the income arising from sources within India.

Other Taxes.
There is a five percent sales tax applicable to most goods along with excise taxes on alcohol, drugs, automobiles, cosmetics, cigarettes and air conditioners. States also levy sales taxes ranging from four to 10 percent. A number of luxury, real estate and other taxes may also apply