Future Generali India Life Insurance Company Limited is now Generali Central Life Insurance Company Limited. Generali Central Life Insurance Company Limited – A joint venture between Generali – one of the world’s leading insurers and Central Bank of India, India’s finest nationalised bank.
Future Generali India Life Insurance Company Limited is now Generali Central Life Insurance Company Limited. Generali Central Life Insurance Company Limited – A joint venture between Generali – one of the world’s leading insurers and Central Bank of India, India’s finest nationalised bank.
Does India Have a High Income Tax Rate Compared Globally?
2 mins
23.7KThe income tax rate for India follows a progressive tax regime, which means that individuals who earn more pay a higher share of taxes as compared to others. Moreover, some citizens often complain about the personal income tax burden in India.
In the latest Union Budget for the years 2019-2020, the surcharge rate for persons with an income between ₹2 crores to ₹5 crores was raised to 25% from the existing 15%. For individuals with an income more than ₹5 crores, the surcharge is now 37%. Since surcharge is the additional levy imposed on individuals drawing high incomes, the effective tax rate on individuals earning more than ₹5 crores is now 42.74%.
Compared to countries such as Canada, the U.K., the U.S.A. and China, the income tax rate for India is lower. While India’s highest tax rate is 42.74%, Canada’s highest rate is 54.0%. While the U.K. and China both levy their highest taxes at 45%, the highest tax rate in the U.S.A. is 50.3%.
While the highest tax rate is one measure that is analysed to compare taxation systems, it is necessary to compare effective, average tax rates. Taking rupees as a metric here for better understanding:
- Canada:Among the 5 countries studied here, Canada has the highest effective tax rate. While the population earning more than ₹6 crore are taxed at 51.4%, those earning about ₹1 crore are subjected to taxes at a rate of 38.88%; which is significantly higher than other countries’.
- China:In China, the tax rate imposed on individuals earning between ₹1 crore to ₹2 crore is 26.81%, while those earning more than ₹6 crore are subjected to taxes at a rate of 41.97%.
- The U.K.:For persons earning an income between ₹1 crore to ₹2 crore in the U.K., taxes are levied at a rate of 29.13%. Meanwhile, those earning upwards of ₹6 crore are expected to pay taxes at a rate of 42.1%.
- The U.S.A.:While the U.S.A. has the second highest tax rate for the highest earners, at 44.7%, it is low for those earning between ₹1 crore to ₹2 crores. Those individuals are subjected to a tax rate of merely 28.2%, which is lower than India’s.
In conclusion, the income tax rate for India broadly appears to be on par with global peers. It is neither unreasonably high nor low.
Suggested Plans
Related Posts
We foster an inclusive workplace where diverse perspectives thrive, and every individual feels valued, respected, and empowered.
Tax Hacks
What are the special income tax benefits for women?
4 mins
18.8K
Posted on: Jul 30, 2025
Tax Hacks
What is the section 10(10D) tax benefit of Generali Central Big Dreams Plan?
2 mins
3.9K
Posted on: Jul 22, 2025
Tax Hacks
Which Generali Central Life Insurance plan can give me section 80C tax benefits?
2 mins
2.9K
Posted on: Jul 22, 2025
Get Expert Advice from Your Trusted Life Insurance Partner!
Have questions? Get help and reliable support from experts at Generali Central India Life Insurance.
Explore Knowledge Centre
From insurance basics to wealth-building strategies — everything you need, in one place.
Got Questions? We’ve Got Answers!
Here are answers to some of the questions you might have.
Life insurance is a financial safety net that supports your loved ones in your absence. If something happens to you, it provides them with funds to help cover everyday expenses, repay debts, and achieve future goals. It gives you peace of mind, knowing your family’s financial future is secure— no matter what.
The right plan depends on your needs.
Start by assessing your life stage, financial goals, and the needs of your family. Consider factors like your income, outstanding loans, future expenses and goals (like children’s education, foreign travel, study abroad), and desired coverage amount. We offer a wide range of plans that cover multiple goals and budgets. To get a better idea and make a confident choice consult with a financial advisor or call us on 1800 102 2355.
A good rule of thumb is to aim for coverage that's 10–15 times your annual income. Consider your family’s living expenses, outstanding loans, children’s education, and long-term goals. The right amount ensures your loved ones can maintain their lifestyle and meet future needs— even in your absence.
We would love to help you choose and buy the right policy for your needs. Call our toll-free number 1800 102 2355 or drop us an email at care@generalicentral.com.
Reach out to us in any way that you prefer, and our team of experts will soon get back to you!
Disclaimers
Understand your policy better with key details and insights into our Generali Central Life Insurance.
This Product is not available for online sale. Life Coverage is included in this Product. For detailed information on this plan including risk factors, exclusions, terms and conditions etc., please refer to the product brochure and consult your advisor, or, visit our website before concluding a sale. Tax benefits are as per the Income Tax Act 1961 and are subject to any amendment made thereto from time to time. If you have any request, grievance, complaint or feedback, you may reach out to us at care@generalicentral.com For further details please access the link: www.generalicentrallife.com/customer-service/grievance-redressal-procedure.
Subscribe to get our best content in your inbox
Subscribe to our newsletter and stay updated.