Tax And Finance >> Planning
Tax System in India
India has a well-developed tax structure with clearly demarcated authority between Central and State Governments and local bodies.
In the last 10- 15 years, the tax system in India has undergone some significant changes. The entire system has been tremendously reformed.
The tax rates have been rationalized and tax laws have been simplified resulting in better compliance, ease of tax payment and better enforcement.
The process of rationalization of tax administration is ongoing in India.
Tax Levied by Central Government
Tax Levied by State Government
Tax Levied by Local Bodies
Double Tax Avoidance Treaty
India has entered into DTAA with 80 countries including the US. In case of countries with which India has Double Tax Avoidance Agreement,
the Tax rates are determined by such agreements. Domestic corporations are granted credit on foreign tax paid by them, while calculating
tax liability in India.
Overview of Indian Taxes