South Asia · Asia

India

46limited

Overall Score

India is a South Asia jurisdiction. with a standard worldwide income tax regime applicable to tax residents. Corporate profits are taxed at 25%.

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Corporate Tax

25%

Personal Income Tax

30%

Capital Gains

13%

VAT / GST

18%

Overview

Key Data

Taxation

Personal Income Tax (max)30%

Personal Income Tax (min)5%

Corporate Tax Rate25%

Capital Gains Tax13%

VAT / GST18%

Dividend Tax Rate20%

Withholding Tax20%

Territorial TaxationNo

Foreign Income Exempt—

Remittance-Based Tax—

CFC RulesNo

Tax Residency Days182 days/year

Tax Treaties—

Residency & Visa

Digital Nomad VisaNo

Golden VisaNo

Retirement VisaNo

Investment VisaNo

EU MemberNo

Schengen AreaNo

EU PassportNo

Min. Days Required / Year—

Min. Monthly Income—

Min. Investment (residency)—

Citizenship Path—

Setup Difficulty—

Business & Cost of Living

Cost of Living Index25/100

Avg. Monthly Cost—

Company Formation Time—

Formation Cost (est.)—

Annual Compliance Cost—

Free Zone AvailableNo

Banking Easemoderate

Internet Qualitymoderate

Compliance & Reputation

FATF Statuscompliant

EU Blacklist Statusnot_listed

OECD Compliance—

CRS Participant—

FATCA Compliant—

BEPS Participant—

Treaty Network Quality—

Personal Tax Residency

Tax residency in India is generally triggered by physical presence exceeding 182 days in a calendar year. Foreign income treatment: unknown. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

New optional regime (2024): 0% up to ₹3L, 5–30% above. Old regime: up to 30% + surcharges/cess (max ~42.74%). Corporate: 25% for <₹400 crore turnover; 22% MAT option. LTCG 12.5% (>₹1.25L exempt p.a.); STCG 20%. GST 0–28% by product. Large startup ecosystem.

Company Setup & Business Taxation

The standard corporate income tax rate is 25%. Establishing a legal presence here involves a higher degree of administrative complexity, often requiring local legal assistance.

Banking & Financial Access

Banking access in India is attainable but may require more documentation and time than in simpler jurisdictions. Internet infrastructure is developing. Speed and reliability can vary by location and should be assessed for business-critical operations.

Compliance & International Reputation

India is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Who This Jurisdiction Works Best For

Based on our scoring model, India ranks highest for Freelancer and Founder / Entrepreneur. It offers a reasonable proposition for freelancer (score: 48/100). It offers a reasonable proposition for founder / entrepreneur (score: 48/100). It scores lower for freelancer and founder / entrepreneur and digital nomad and high net worth individual, who may find other jurisdictions more suitable for their specific requirements.

Legal Notice

The information on this page is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and residency rules change frequently and vary significantly by individual circumstances. Always consult a qualified professional licensed in the relevant jurisdictions before making any decisions.