Guide to Residential Status of Individual – Finance Act, 2020
04 May, 2022
An expatriate is a person provisionally residing and employed in a different country while a remaining citizen of his native land. The taxation of such expat employees requires a slightly modified computation than the tax computed for a routine employee of an Indian organisation.
We provide a comprehensive analysis on the tax and regulatory implications on seconding an expatriate in India. The advice usually covers the Permanent Establishment issues, tax efficient salary structure advice, applicability of social security contributions, foreign exchange issues and other tax compliance requirements.
VISA documentation and Bank Account opening We can assist the expatriate and the employer in arranging the correct documentation for VISA and Bank account opening purposes.
All foreigners visiting India on a long term visa of more than 180 days, are required to get FRRO registration done within 14 days of their arrival in India. Foreigners (including minors above the age of 16) need to get their registration done. Therefore, the family members of the expatriate, above the age of 16 will have to get themselves registered.
We help obtain PAN, a unique identification number given by the Indian income tax authorities and an expat needs to obtain it in case his/her income is taxable in India. This is also used for filing a return of income in India.
We assist the expatriates in finalizing the computation for the relevant financial year and filing the income tax return before the due date i.e. 31st July of the next financial year. We also help the expat to disclose the overseas foreign assets and liabilities in case it’s applicable.
Prior to final departure from India, we can help the expat to obtain an Income-Tax Clearance Certificate (‘ITCC’) from the Indian tax authorities and get the FRRO cancelled. The ITCC is required to be presented to the immigration authorities.