India Taxation of EmployeeThe 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%|
|Aircraft and trucks||40%|