Individual Taxpayers Impacted by New Tax Rates in India

    Jul 24, 2017 @ 10:57 AM / by Jeremy Piccoli

    New Delhi, India as seen during AIRINC's recent on-site cost of living survey. Photo taken by AIRINC surveyor Zach Rossignol.

    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%

    AIRINC's Data Points: Your Global Mobility News

    Want to learn more?  The above excerpt is taken from Data Points, AIRINC's quarterly newsletter.  More mobility data highlights are now available on our website at

    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.

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    Topics: International Tax, Global mobility, Goods & Services, Data Points, India, Data and Infographics

    Jeremy Piccoli

    Written by Jeremy Piccoli

    Jeremy joined AIRINC in the fall of 2012 and is responsible for managing AIRINC’s International Tax Guide and tax calculator products, as well as consulting with clients. Prior to joining AIRINC, Jeremy spent more than 6 years with PricewaterhouseCoopers’ International Assignment Services practices in Hartford and Boston, providing tax compliance and consulting services to multinational companies and their expatriate population. He received his B.S. with a concentration in Accounting and a Master of Science in Accounting from the University of Connecticut. Jeremy is an Enrolled Agent, a federally licensed tax practitioner who specializes in taxation.