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.