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Taxation of Expatriates

Our partner, Mr. Amit Maheshwari has also co-authored a book on "Expatriate Taxation - Decoding the Complexity" currently in its second edition, which attempts to decode various contentious and commonly encountered tax and regulatory issues and challenges faced by the expatriates and their employers in India. It provides comprehensive view about rules and regulations applicable to expats in India.

Our Expat Tax Services help the companies who are seconding or deputing expats and the expats themselves in complying with the complex tax and regulatory issues surrounding any expatriate assignment. With the huge influx of Foreign Direct Investment in India there has also been increase in demand of specialized skills of mobile employees known as ‘expatriate’ in India.

Our team of Chartered Accountants and attorneys working in the Tax and Regulatory team would provide the following services:

Advisory Services on Secondment of Expatriate 

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.

Obtaining FRRO Registration (Foreign Regional Registration Offices)

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.

Obtaining Permanent Account Number (PAN)

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.

Computing Withholding taxes and making tax equalization statements
  • The entity employing the expats is required to withhold the taxes (accurately converting salaries in foreign currency as per the Income-tax Rules, 1962 and taking into account various exemptions and deductions) due on the salaries paid to those expatriates.
  • Post this withholding the entity needs to pay these taxes to the government and file quarterly returns of withholding taxes in Form 24Q with details of the expatriates.
  • At the end of the year, Form 16 which contains the taxes withheld and computation for taxable salary and Form 12BA containing detail of perquisites has to be issued.
  • We help in doing the tax equalization calculation and the hypo tax workings.

We help the employers end to end in this entire process.

Assistance in Income Tax Return Filing and disclosure of Foreign Assets and Liability

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.

Completion of Exit Formalities

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

Connection to trusted specialists in home search and immigration

We can recommend trusted Real Estate consultants specializing in relocation services for expats and immigration consultants to take care of the VISA formalities.