India

Last update: 2026-05-19
IN INR English
Pros
Large, young, and increasingly digital workforce offering significant human capital for private enterprise.
Ongoing deregulation and simplification of the tax code to encourage foreign direct investment and entrepreneurship.
Rapid expansion of private infrastructure projects and digital public goods reducing transaction costs for businesses.
Cons
Persistent bureaucratic hurdles and complex regulatory compliance requirements slowing down business operations and market entry.
High levels of protectionist trade barriers and occasional unpredictable shifts in government economic policy.
Inconsistent enforcement of property rights and slow judicial processes for resolving commercial disputes.
Personal income
0 → 30%
progressive
Corporate
31.2 → 34.9%
progressive
Capital gains
12.5%
flat
VAT (standard)
18%
standard rate
i 4.9 VERY LOW TAX
i 3.6 PRIVACY GRADE
i 3.2 HOLDING
i 2.8 DIVIDEND PIPELINE
i 2 CRYPTO HAVEN
i 2 EASY CITIZENSHIP
VERYLOW TAX 4.9/10 HOLDING 3.2/10 DIVIDENDPIPELINE 2.8/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 3.6/10 EASYCITIZENSHIP 2/10
01/08

Will India tax what you earn?

income tax tax residency territorial system

YES, A LOT. India taxes personal income heavily (top marginal rate 30%), and its definition of tax residence is wide: prolonged stay, economic centre of gravity, the net closes. The classic combo of high rate and broad catchment. Leaving is rarely as simple as buying a plane ticket.

Personal income taxi
0 → 30%
progressive · 7 brackets
Income simulatori
Income
Tax due
Effective rate
all-in
Marginal rate
+4%
Health and education cess applied on the amount of income tax and surcharge
+10%
Surcharge on income above INR 5 million up to INR 10 million
+15%
Surcharge on income above INR 10 million up to INR 20 million
+25%
Surcharge on income above INR 20 million
Tax residence testi
16/183 days
183-day rule
Economic interest
Family centre
Habitual abode
Extended-stay test
Just one rule above is enough to make you tax-resident here.
02/08

Will India tax what you own?

capital gains wealth tax inheritance dividends interest

YES, BUT LIGHTLY. India taxes capital gains lightly (12.5% at the top), with no annual wealth charge and no inheritance regime. A held portfolio compounds with minimal friction; the state only shows up at disposal.

Capital gainsi
12.5%
flat · +15% Surcharge on long-term capital gains (capped at 15% for income above INR 5 million) · +4% Health and education cess applied on tax and surcharge
Dividend taxi
30%
progressive · +4% Health and education cess applied on top of the income tax and surcharge · +10% Surcharge on income above INR 5 million up to 10 million · +15% Surcharge on income above INR 10 million up to 20 million · +25% Surcharge on income above INR 20 million
Interest incomei
30%
progressive
Wealth taxi
NONE
no annual wealth tax · no real-estate wealth tax · no net-worth assessment
Crypto · tax regimei
Regime
FLAT TAX
Rate
30%
Income from the transfer of Virtual Digital Assets (VDAs) is taxed at a flat 30% rate plus a 4% health and education cess. No deductions are allowed except for the cost of acquisition. Losses from VDA transactions cannot be set off against any other income or carried forward to future years. A 1% Tax Deducted at Source (TDS) applies to most transactions exceeding specified thresholds.
Crypto-to-cryptoi
TAXABLE
each swap counts as a disposal — gains realised at every trade
FATF travel rulei
NOT SIGNED
no information-sharing obligation on VASP transfers
Inheritance systemi
NONE
no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply.
03/08

Is it easy to run a company in India?

corporate tax criminal liability public registry VAT IP box

NO. India sits at the high end with corporate tax at 34.9%, though an IP-box regime at 10% buys back some of the bill for IP-heavy businesses. Outside of qualifying IP income, the load is heavy.

Corporate taxi
31.2 → 34.9%
progressive
IP Box · Patent Boxi
10%
vs. 34.9% corp
patents
Patent Box (Section 115BBF) · gross income
Misuse of corporate assetsi
NO CRIMINAL LIABILITY
Civil Matter / Breach of Fiduciary Duty
India follows Common Law principles where a sole shareholder/director of a solvent company is generally not criminally liable for using corporate assets for personal use, as the 'dishonest intent' required for Criminal Breach of Trust (Section 316 of the Bharatiya Nyaya Sanhita / Section 405 IPC) cannot be established when the sole owner consents. Such acts are treated as civil breaches of fiduciary duty under Section 166 of the Companies Act 2013 or as 'deemed dividends' for tax purposes under Section 2(22)(e) of the Income Tax Act.
Shareholders privacyi
PUBLIC PAYWALL
Ministry of Corporate Affairs (MCA)
Directors privacyi
PUBLIC
Ministry of Corporate Affairs (MCA)
Incorporation costi
Private Limited Company
Private Limited Company
Government Registration Fees & Stamp Duty USD 63
Digital Signature Certificates (DSC) for Directors USD 42
Professional Fees (Incorporation, Legal Drafting & FDI Compliance) USD 420
Total USD 525
VAT standard ratei
18%
2 distinct tiers in force
0% 18%
Energy
0%
electricity
04/08

Is India good for your holding company?

treaty network participation exemption withholding

NOT REALLY. India has a moderate 46-strong treaty network. Without a participation exemption, dividends from subsidiaries land in the corporate schedule (34.9%): workable for operational subsidiaries, much weaker as a pure holding vehicle.

Territorial systemi
Individuals
WORLDWIDE
Corporates
WORLDWIDE
Individuals: worldwide income taxation regardless of source. Corporates: worldwide.
Participation exemptioni
NONE
no dividend participation exemption regime
CFC rulesi
NONE
no controlled foreign corporation regime · foreign-source corporate income out of scope
WHT · dividendsi
20%
non-resident outbound
WHT · interest
20%
non-resident outbound
WHT · royalties
20%
non-resident outbound
Tax-haven WHT
no punitive rate on record
Treaties signedi
43
active
Treaties pending
in negotiation
Tax treaty networki
origin · IN 0% > 0% no treaty
Inspect a country
Hover any country on the map to read its withholding-tax treaty with IN.
Country Status Dividends Interest Royalties
// no treaties match
05/08

What does it cost to come and go from India?

exit tax territorial system dual citizenship

SOME. India taxes worldwide income while you're resident, but there's no exit tax on the way out. The cost of leaving is mostly paperwork: unrealised gains follow you to the next jurisdiction untouched.

Exit taxi
NONE
no triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
FORBIDDEN
naturalisation requires renouncing existing citizenship
Citizenship paths
Residence
Marriage
Birth
Descent
Investment
06/08

Will India protect your privacy?

info exchange corporate registries

NOT AT ALL. India has signed every exchange framework that matters and operates a public corporate registry. Whatever you do here (earn, hold, structure) is reportable, accessible, or both. Privacy is not the strategy in this jurisdiction.

Multilateral reporting frameworks 4/10 active · 3 pending
CRS
2017
CARF
FATCA
2014
MLI
2019
BEPS
MAAC
2012
GLOBAL FORUM
EOIR
CRYPTO-CARF
CRYPTO TRAVEL RULE
07/08

Is India itself a liability?

blacklists FATF standing

NO. India is clear of every major blacklist (FATF, EU, France, Spain, Portugal, Brazil) and sits inside FATF membership. Dealing with this jurisdiction is reputationally inert: no flags follow the transaction.

Blacklist exposure Clear everywhere
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list
08/08

Will you feel free in India?

press freedom crypto CBDC EU

NO. Press freedom in India is restricted (RSF rank #151). Civic space and independent media operate under pressure or not at all, a constraint that typically extends to financial expression as well, even where crypto isn't formally banned.

Press freedom · RSF indexi
151/180
score 32 · ↑ 8 ranks year-on-year
Central bank digital currencyi
Program Status Cross-border Sources
Digital Rupee
The main motive is increase efficiency and decrease risks by utilizing instant settlement and programmability to return funds at specific times without delays.
RBI
PILOT
SEE ALSO

Other jurisdictions worth comparing

Picked by similarity of strategic profile to India. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.
NOTABLY MORE FAVORABLE Same family of strategies, higher total score.
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.