Tax Changes in India
The Indian government has presented a 2017/2018 budget that includes several tax changes affecting individual taxpayers. The tax rate applicable to the second tax bracket has been reduced from 10% to 5%. Using a two-tier system, the surcharge for high income earners has been expanded and now applies to taxable incomes exceeding INR 5 million. Taxable incomes exceeding INR 5,000,000 are subject to a surcharge of 10% of the basic income tax. A surcharge of 15% applies to taxable incomes exceeding INR 10,000,000. The tax rebate for low income earners has been reduced from INR 5,000 to 2,500 for taxable incomes below INR 500,000. The net effect of these changes is a small reduction in tax for taxpayers with taxable income below INR 5,000,000, an increase in tax for taxpayers with taxable income between INR 5,000,000 and INR 10,000,000, and a small reduction in tax for taxpayers with taxable income exceeding INR 10,000,000. With the high income surcharge and education cess, the top combined marginal rate is 35.54%
Data Points brings you the latest updates from our Housing, Goods & Services, and Tax departments based on our expert international surveys, which are conducted by our global data collection team on-location.
This quarter's cost-of-living surveys were conducted primarily in Europe, Asia, and mainland Southeast Asia.