India Tax Deductions
India Taxation of Employee
The employer is obligated to deduct tax at source from an employee and to make additional contributions to social security.India Social Security
- An employee: the employer's contribution is 6.3.% of the salary. The employee's contribution is 6.3% of the salary.
- The maximum amount on which national insurance is payable is CYP 1,647 a month.
- Income in excess of the maximum is exempt from national insurance.
- Defense Fund.
The contributions of the employer and of the employee are each 3% of the gross salary.
India Other deductions
- Tax must be deducted from the following payments as follows:
- - Dividend - Standard deduction for a resident - is 20% (A payment to a foreign company - is exempt from any deduction at source).
- A dividend paid by an off shore company to its shareholders is exempt from any deduction at source - Royalties - tax of 10% must be deducted at source.
- Interest - The standard rate of deduction at source - 25%
- When the amount of interest is less than CYP 40,000 the tax deducted is 20%.
Comment: Deduction at source for payments to foreign residents is subject to the Double Taxation Prevention Treaty.
India Tax Relief
- All forms of tax relief in Portugal relate to the income of an individual.
- The following amounts are subject to the definitions in law.
| Individual Relief (2001) | Amount - CYP |
|---|---|
| Buildings | 5 - 20% |
| Furniture and equipment | 10 - 15% |
| Intangible assets (goodwill, etc.) | 25% |
| Machinery and equipment | 25% |
| Vehicles | 20% |
| Aircraft and trucks | 40% |