Asia-Pacific · Tax guide
India
India taxes domestic companies at 22% under the concessional regime and foreign companies at 35%, both before surcharge and cess. GST is charged at 5% or 18% (40% on luxury and sin goods), larger businesses must issue GST e-invoices, and businesses deduct tax at source on many payments. The new Income-tax Act, 2025 applies from April 2026. Direct taxes are administered by the CBDT and GST by the CBIC and the states.
At a glance
- Domestic companies
- 22%
- Foreign companies
- 35%
- GST
- 5% or 18% (40% on luxury and sin goods)
- GST e-invoicing
- ₹50,000,000
- Withholding on royalties abroad
- 20%
- Country-by-country reporting
- ₹6,400 crore
Concessional regime, before surcharge and cess
Before surcharge and cess
Registration above ₹2,000,000 for services
Turnover above which it applies
Before surcharge, cess and treaty relief
Consolidated group revenue
Corporate and business income tax
Domestic companies can opt for the concessional regime at 22%, plus surcharge and cess, without minimum alternate tax but also without most incentives. Foreign companies pay 35% plus surcharge and cess on Indian-source income. Partnership firms and LLPs pay 30%, and individuals in business pay slab rates up to 30% under the default new regime.
Advance tax is paid in four instalments (June, September, December and March) and returns are filed by 31 October, or 30 November where transfer pricing applies. Businesses with turnover above ₹10,000,000 generally need a tax audit.
GST
GST is charged at 5% or 18% (40% on luxury and sin goods), with the central and state shares together on domestic supplies and integrated GST on inter-state supplies and imports. Registration is required above ₹2,000,000 of aggregate turnover for services, or ₹4,000,000 for goods-only suppliers in most states — and regardless of turnover for inter-state supplies of goods and e-commerce sellers.
Businesses with turnover above ₹50,000,000 must report B2B invoices to the Invoice Registration Portal to obtain an IRN and QR code. E-way bills accompany most movements of goods.
Tax deducted at source (TDS)
Businesses deduct tax at source on salaries, contractor and professional fees, rent, commission and interest, deposit it monthly and file quarterly TDS returns. Payments to non-residents need tax withheld before remittance: royalties and fees for technical services 20% and dividends 20%, plus surcharge and cess, unless a treaty gives a lower rate and the recipient provides a Tax Residency Certificate and Form 10F.
Transfer pricing
International and specified domestic transactions must be at arm's length, with an accountant's report (Form 3CEB) filed with the return. Groups with consolidated revenue of ₹6,400 crore or more file country-by-country reports. India has not yet adopted the global minimum tax rules.
Key dates
- By the 7th of each monthTDS deposit for the previous month
- Monthly or quarterlyGST returns (GSTR-1 and GSTR-3B)
- 15 June, September, December and MarchAdvance tax instalments
- 31 OctoberIncome tax return for audited businesses (30 November with transfer pricing)
Figures and sources
12 figures- Corporate tax rate for domestic companies in the concessional regime (before 10% surcharge and 4% cess)22%Checked against the official source
- Corporate tax rate for foreign companies (before surcharge and cess)35%Checked against the official source
- GST rate slabs5% or 18% (40% on luxury and sin goods)Checked against the official source
- Aggregate turnover above which GST registration is required for service providers (₹10 lakh in special category states)₹2,000,000Checked against the official source
- Aggregate annual turnover above which GST e-invoicing is mandatory₹50,000,000Under professional review
- Withholding on royalties and fees for technical services paid to non-residents (before surcharge and cess)20%Under professional review
- Consolidated group revenue for country-by-country reporting₹6,400 croreUnder professional review
- Tax rate for partnership firms and LLPs (before surcharge and cess)30%Checked against the official source
- Top personal income tax rate under the default new regime (before surcharge and cess)30%Checked against the official source
- Turnover above which a tax audit is required (₹10 crore if cash transactions are 5% or less)₹10,000,000Under professional review
- Aggregate turnover threshold for suppliers of goods only (most states)₹4,000,000Checked against the official source
- Withholding on dividends paid to non-residents (before surcharge and cess)20%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in India based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a qualified tax adviser in India (a chartered accountant) before making compliance decisions.