Equalisation Levy Calculator – Income Tax Old Regime India

What is Equalisation Levy?

The Equalisation Levy is a direct tax introduced by the Indian government to tax digital transactions carried out by non-resident companies in India. It applies to specified services such as digital advertising, and more recently, to e-commerce operators selling goods or providing services online.

There are two major heads under this levy:

• 6% Levy on payments for digital advertisements and related services by Indian businesses to non-residents (e.g., Google Ads).
• 2% Levy on consideration received by e-commerce operators from Indian users (introduced in 2020).

Why Is This Calculator Useful?

• Helps businesses estimate the amount of tax liability while paying to non-residents
• Supports both advertisement and e-commerce categories
• Automatically applies standard deduction (editable)
• Updated to reflect old regime tax planning

Who Pays Equalisation Levy?

Under the current rules:

• For 6% levy – the payer (Indian resident) deducts and deposits tax
• For 2% levy – the e-commerce operator is liable to deposit levy on gross revenue from Indian users

When to Use This Tool:

• Before remitting payment to platforms like Google, Facebook, Amazon
• While calculating total expenses for advertising campaigns
• To assess whether e-commerce platforms are liable for 2% levy
• For filing Form 1 and understanding Equalisation Levy returns

Our tool does not collect or save any data. It's designed for estimation only, and you should consult a tax advisor for filing and compliance.