PAYROLL TAX >>
EMPLOYER NEED TO WITHHOLD TAXES ON EMPLOYEE EARNINGS
RATES FOR FY 2011-2012 |
Income Range |
Rate (%) |
|
Upto 180,000
( USD 4,000 approx )
|
Nil |
|
180,001 - 500,000
( USD
4,000- 11,100 approx )
|
10 |
|
500,001 - 800,000
( USD 11,100 - 17,700 approx )
|
20 |
|
800,001 and above
( above USD 17,700 approx )
|
30 |
( 1 USD = 45 INR ) |
An employer is required to contribute and comply with a social tax namely Provident Fund . There is also an Employee State Insurance cost . Both of these primarily focus on blue collared staff .
Foreign nationals deputed to work in India will be taxed on the basis of tax residential status , which is linked to the days stayed in India . An employment / business visa is necessary , as is registration with the Foreigners Regional Registration Officer (' FRRO ').
There are certain state specific regulations e . g . Professional Tax and Shop and Establishment Act , which apply in Indian states like Karnataka , Maharashtra etc .