Guide to Global Payroll Management - 2020 - C-25

Payroll Tax Summaries for Selected Countries

INDIA

INDIA
Basis for tax
The basis for tax varies depending on the individual's residency status during the previous year. Resident individuals are taxed on their worldwide income. Individuals who are not
ordinarily resident are subject to tax on income received, accrued, or deemed accrued or to
be received in India, and on income received or accrued outside of India from a business
controlled or operated in India.

Residence rules
Individuals are considered resident, but not ordinarily resident, if they reside in India for
182 days or more during the tax year (April 1 to March 31), or for 60 days or more during the
tax year and have resided in India for at least 365 days during the preceding four tax years.
Indian citizens who have left the country for employment or as members of a crew of an
Indian ship, or those who are working abroad and return for vacation, are allowed a 182 day
threshold, rather than the 60 day threshold.
Individuals are considered ordinarily resident if, in addition to meeting one of the above
tests, they have resided in India for nine years or more out of the preceding 10 years, and
for 730 days or more in the preceding seven tax years.
Anyone who cannot satisfy any of these tests is considered a nonresident.

Taxable employment income
Taxable earned income includes salaries, wages, bonuses, fringe benefits (such as personal expense reimbursements, educational assistance, and other free or discounted items
provided by the employer), pensions, commissions, allowances and other cash compensation for work performed. Certain medical expense reimbursements, housing benefits, and
certain retirement benefits are tax-exempt.
Expatriates working for foreign companies may qualify for certain tax exemptions if:
*

the total stay in India does not exceed 90 days in a previous year;

*

the foreign concern does not engage in trade or business in India; and

*

the compensation is not charged to a person subject to Indian income tax.

Tax rates
Income taxes. Income tax rates for tax year 2018-2019 are as follows: income level of
INR 250,001 to 500,00, 5%; INR 500,001 to 1,000,000, INR 12,500 plus 20% on the balance
of income exceeding INR 500,000; for income exceeding INR 1,000,000, INR 112,500 plus
30% on balance of income exceeding 1,000,000.
Additionally, a surcharge of 10% is levied on income greater than INR 500,000 and up to
INR 10 million. A rate of 15% is assessed on income above INR 10 million.
Certain states levy a profession tax on employees, which is withheld from salary by the
employer and is not taxable income.

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Guide to Global Payroll Management - 2020

Table of Contents for the Digital Edition of Guide to Global Payroll Management - 2020

Table of Contents
Guide to Global Payroll Management - 2020 - Intro
Guide to Global Payroll Management - 2020 - Cover1
Guide to Global Payroll Management - 2020 - Cover2
Guide to Global Payroll Management - 2020 - A
Guide to Global Payroll Management - 2020 - B
Guide to Global Payroll Management - 2020 - C
Guide to Global Payroll Management - 2020 - PV-1
Guide to Global Payroll Management - 2020 - PV-2
Guide to Global Payroll Management - 2020 - D
Guide to Global Payroll Management - 2020 - E
Guide to Global Payroll Management - 2020 - F
Guide to Global Payroll Management - 2020 - Table of Contents
Guide to Global Payroll Management - 2020 - 2
Guide to Global Payroll Management - 2020 - 3
Guide to Global Payroll Management - 2020 - 4
Guide to Global Payroll Management - 2020 - 5
Guide to Global Payroll Management - 2020 - 6
Guide to Global Payroll Management - 2020 - 7
Guide to Global Payroll Management - 2020 - 8
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Guide to Global Payroll Management - 2020 - 11
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Guide to Global Payroll Management - 2020 - 13
Guide to Global Payroll Management - 2020 - 14
Guide to Global Payroll Management - 2020 - PI
Guide to Global Payroll Management - 2020 - PI-1
Guide to Global Payroll Management - 2020 - 1-1
Guide to Global Payroll Management - 2020 - 1-2
Guide to Global Payroll Management - 2020 - 1-3
Guide to Global Payroll Management - 2020 - 1-4
Guide to Global Payroll Management - 2020 - 1-5
Guide to Global Payroll Management - 2020 - 1-6
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Guide to Global Payroll Management - 2020 - 1-11
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Guide to Global Payroll Management - 2020 - 2-22
Guide to Global Payroll Management - 2020 - 2-23
Guide to Global Payroll Management - 2020 - 2-24
Guide to Global Payroll Management - 2020 - 2-25
Guide to Global Payroll Management - 2020 - 2-26
Guide to Global Payroll Management - 2020 - 2-27
Guide to Global Payroll Management - 2020 - 2-28
Guide to Global Payroll Management - 2020 - 2-29
Guide to Global Payroll Management - 2020 - 2-30
Guide to Global Payroll Management - 2020 - 3-1
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Guide to Global Payroll Management - 2020 - 4-10
Guide to Global Payroll Management - 2020 - PII
Guide to Global Payroll Management - 2020 - PII-1
Guide to Global Payroll Management - 2020 - 5-1
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Guide to Global Payroll Management - 2020 - 8-8
Guide to Global Payroll Management - 2020 - PIII
Guide to Global Payroll Management - 2020 - PIII-1
Guide to Global Payroll Management - 2020 - 9-1
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Guide to Global Payroll Management - 2020 - 9-3
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Guide to Global Payroll Management - 2020 - 9-20
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Guide to Global Payroll Management - 2020 - 9-22
Guide to Global Payroll Management - 2020 - 9-23
Guide to Global Payroll Management - 2020 - 9-24
Guide to Global Payroll Management - 2020 - 9-25
Guide to Global Payroll Management - 2020 - 9-26
Guide to Global Payroll Management - 2020 - 9-27
Guide to Global Payroll Management - 2020 - 9-28
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Guide to Global Payroll Management - 2020 - 10-10
Guide to Global Payroll Management - 2020 - 10-11
Guide to Global Payroll Management - 2020 - 10-12
Guide to Global Payroll Management - 2020 - PIV
Guide to Global Payroll Management - 2020 - PIV-1
Guide to Global Payroll Management - 2020 - 11-1
Guide to Global Payroll Management - 2020 - 11-2
Guide to Global Payroll Management - 2020 - 11-3
Guide to Global Payroll Management - 2020 - 11-4
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Guide to Global Payroll Management - 2020 - 11-10
Guide to Global Payroll Management - 2020 - 11-11
Guide to Global Payroll Management - 2020 - 11-12
Guide to Global Payroll Management - 2020 - 11-13
Guide to Global Payroll Management - 2020 - 11-14
Guide to Global Payroll Management - 2020 - 11-15
Guide to Global Payroll Management - 2020 - 11-16
Guide to Global Payroll Management - 2020 - 11-17
Guide to Global Payroll Management - 2020 - 11-18
Guide to Global Payroll Management - 2020 - 11-19
Guide to Global Payroll Management - 2020 - 11-20
Guide to Global Payroll Management - 2020 - 11-21
Guide to Global Payroll Management - 2020 - 11-22
Guide to Global Payroll Management - 2020 - 11-23
Guide to Global Payroll Management - 2020 - 11-24
Guide to Global Payroll Management - 2020 - 11-25
Guide to Global Payroll Management - 2020 - 11-26
Guide to Global Payroll Management - 2020 - 11-27
Guide to Global Payroll Management - 2020 - 11-28
Guide to Global Payroll Management - 2020 - 11-29
Guide to Global Payroll Management - 2020 - 11-30
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Guide to Global Payroll Management - 2020 - PV
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Guide to Global Payroll Management - 2020 - PVI
Guide to Global Payroll Management - 2020 - PVI-1
Guide to Global Payroll Management - 2020 - AppA
Guide to Global Payroll Management - 2020 - AppA-1
Guide to Global Payroll Management - 2020 - A-1
Guide to Global Payroll Management - 2020 - A-2
Guide to Global Payroll Management - 2020 - A-3
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Guide to Global Payroll Management - 2020 - AppB
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Guide to Global Payroll Management - 2020 - AppC
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