Expats Tax Services

 

  • India's few Expat consulting services firm present in Delhi-NCR
  • Expertise on expats taxation including FRRO registration
  • Handling a lot of client from Japan, Korea, China, USA, UK 
  • Successful delivery of Tax compliance of 500+ Expats in India
  • Outsource Expatriate Taxation & Relax!
  • Write to us at accounts@especia.co.in

Call us on +91 9310165114
Expats Tax Services
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Expats Taxation Services

Expats/Expatriates Meaning in India:

Expatriates are the professionals deployed by the companies to their associated enterprises or subsidiaries in another country, temporarily or permanently. The country in which they are deployed is different from their country of citizenship.

 

Whether an expatriate employee is a resident individual or non-resident individual, the amount received by him as salary for services rendered in India is liable to income tax under the head "salaries". Several provisions like gross-up and the average rate of tax make the Income-tax calculation for expats a complex matter.

Our Experts at Especia Associates LLP, a leading expatriate taxation services are well versed in dealing with Tax on Expats, NRI Taxation/Tax services, tax services for the US, Japan, Korea, China & Other countries expats, tax preparation for expats. We adopt the practices that are in the best interest of the expatriates as well as the Indian Company in which they have been deployed. We are offering services in Noida, Delhi, Gurgaon, NCR & Other Regions in India.

 

FRRO registration:

Any foreigner national who comes to India for more than 180 days on a student visa, business visa, medical visa or employment visa has to register with Foreign Regional Registration Office (FRRO) within 14 days of arrival in India (24 hours in case of Pakistan Nationals).

 

How do we help?
  • Advising on FRRO registration matters and helping in understanding the terms and conditions of FRRO registration,
  • Assisting in completing the FRRO form and scheduling the interview,
  • Assisting in making a set of required documents at the time of attending the interview.

We also have liaised with the field officers to ensure quick and hassle-free completion of checks and inquiries (only if all the documents are completed and the objective is genuinely correct).

 

Review of the expatriate employment agreement:

Every company enters into an employment agreement with the expatriates to discuss the terms and conditions of the employment along with finalizing the other provisions of employment.

We review the expatriate employment agreement from both the parties' side - company as well as employees. During our review, we ensure that we provide reasonable assurance about the terms and conditions mentioned in the employment.

 

Preparation & Computation of Income & Taxes:

Expatriates have to take care of certain important provisions while computing their taxable income and the taxes thereon. Complex provisions like "gross-up" etc. have to dealt expertly else income tax authorities may impose severe penalties.

Our expert team assists in computing the income by taking all the relevant provisions into consideration. We also help in claiming the eligible tax deductions which can reduce the overall tax liability.

 

Preparation & Submission of Income Tax Return:

Accurate computation of income is half the mission accomplished. We help you in preparing the income tax return in the form prescribed by the Income Tax Department.

 

Our approach in filing the income tax return:
  • Collecting the data and information related to income and expenses,
  • Preparing the final income tax return in a spreadsheet,
  • Approving the final return from our client,
  • Filing the return on income tax website and sending back the documents and acknowledgment

 

Other Income Tax Advisory Matters:

We help the expatriates to obtain a PAN card from the Income Tax Department. We also help them to obtain other certificates or forms from the income tax authorities who will help them in planning their taxes quickly and efficiently.

Our experts have enormous experience of handling income tax matters for expatriates and our proven methodology and adoption of leading practices help us provide a tax tension free environment to the foreign nationals.

 

Obtaining Income-tax Clearance from tax authorities:

According to provisions of income tax laws, an expatriate cannot leave India before obtaining an Income Tax Clearance Certificate from Assessing Officer who certifies that the expatriate has paid all the due taxes. We help the expatriates in obtaining the income tax clearance certificate from the tax authorities by completing all the formalities and submitting the necessary documents for quick and hassle-free processing. Our experts also help in canceling all the registrations including FRRO registration that you don't have to face any problem at the time of immigration.

 

If you are looking forward to Taxation Service or Tax Preparation for Expatriates (Expats), Best Expatriate NRI tax consultants/consultation, You can write to us at accounts@especia.co.in.

FREQUENTLY ASKED QUESTIONS (FAQS) RELATED TO Expats Tax Services

  • 1. Who are expats in India?

    An expatriate is an individual living in a country other than his own country on a temporary basis for employment purposes or for any work reasons. For example, some MNCs send their employees from own country’s company to subsidiary company located in a different country on a temporary basis for employment purpose.

  • 2. I am expats in India. Is my income taxable in India?

    Yes, income earned by an expatriate in India is taxable in India irrespective of the residential status you possess. The payment made to expatriates is also subject to TDS.

    Our professional team at Especia has vast experience in handling expats taxation matters. We advise you that your income is taxable in India.

  • 3. I have also overseas income. Am I liable to pay tax on that income also?

    Your overseas income is tax-free in India if your status is non-resident in India. If you are a resident in India, then your global income is taxable.

    We provide you the best consultancy to keep your residential status non-resident in India to save your tax on overseas income.

  • 4. How can I become resident in India as per Income Tax Act?

    An individual shall be considered as a resident in India if he satisfies any of the following two conditions:

    • His total stay in India is 182 days or more in previous F.Y.
    • His total stay in India is 365 days or more in immediately preceding 4 F.Y. and 60 days or more in the relevant F.Y.

    In case of individual being citizen of India leaves India for employment purpose outside India, then conditions (b) shall not apply to him. From F.Y. 2020-21, the period of 182 days is reduced to 120 days for such individuals whose total income (other than foreign sources) exceeds Rs.15 lakhs.


    One major amendment also brought in Budget 2020 that every citizen shall be deemed to be the resident of India if he is not liable to pay tax in any other country and his total income (other than foreign sources) exceeds Rs. 15 Lakhs.

  • 5. I am resident in two countries. Am I liable to pay tax on my global income in both countries? Isn’t it lead to double taxation on same income?

    It is a big issue among expatriates that what if he became a resident of both the countries as per the Income Tax Law of the respective country. In such a situation, the “Tie Breaker rule” shall apply to determine the residential status.

    • Permanent home: In this rule, we will check that in which country, you have a permanent home. Let’s say if you have a permanent home in both the country. Then the second rule applies.
    • Closer economic ties: In this rule, we will check that in which country you have more financial interest. If it fails.
    • Longer Residence: In this rule, we will check that in which you reside for a long time. Even let’s say it also fails.

     Nationality Test: In this rule, we will check your nationality status. If it also fails, then revenue authority shall determine your residential status as per their criteria.

  • 6. I am expatriate employee and my home country’s company has allotted me ESOP when I am rendering my service in India. Will the whole ESOP perquisite be included in my salary earned in India in year of allotment?

    No, as per the judgment of Delhi ITAT Robert Arthur Keltz (35 taxmann.com 424), it was held that only proportionate ESOP prerequisite which is related to service rendered by the assessee in India between the grant date and vesting date is taxable in India.

    Our tax professionals guide you in a very well manner about your taxability of salary in India.

  • 7. I am non-resident in India and invested in LIC. Am I eligible to claim deduction u/s 80C?

    Yes, you are eligible to claim deduction u/s 80C as it is eligible for individual or HUF whether resident or non-resident.

    Our tax professionals guide you where to invest to get deduction as well as more return on investment.

  • 8. I have a house property located in my home country but I have received the rent in India. Am I liable to pay tax on that Income even if my residential status is non-resident in India?

    Yes, as per section 5 of the Income Tax Act, any income which is received in India shall be taxable in India irrespective of your residential status. If the income has been received in your home country, then you are not liable to pay tax in India.

  • 9. I have earned long term capital gain on sale of immovable property located in my home country and received lump sum consideration outside India. Am I still liable to tax on Long Term Capital Gains if I am resident in India?

    Yes, if you are a resident of India, then your entire global income is taxable.

    Especia deals with a lot of MNCs including a lot of Korean as well as Japanese clients in the matter of Expats Taxation for a long time. We have expertise in dealing with such an issue with proper tax planning.

  • 10. I have sold long term unlisted shares. Whether the benefit of indexation is available to me as a non-resident?

    No, the benefit of indexation is not available in case of non-resident but the tax rate is 10% as against 20% charged from a resident on capital gain arises from the sale of unlisted shares.

  • 11. What is short stay exemption?

    Short stay exemption is available to expatriate if he is present in an overseas country for less than 183 days during relevant Previous year.

  • 12. Will my salary be grossed up for the purpose of payment of tax?

    Yes, levy of tax is not on the expatriate but on the company by which you are sent in India. Let’s say if your salary is Rs.1 crore and assume tax on it is Rs.30 lakhs. Now, an expatriate will get Rs.1.30 crore includes Rs.30 as his tax.

  • 13. In which ITR form I should file my ITR if I am non-resident?

    A non-resident and not ordinarily resident have to file their return of Income in ITR-2 form if you have income from salary because ITR-1 is available for residents only.

    Especia team has a specialization in filing the return of income of Expatriates. We have a tie-up with companies like Honda to file ITR of their expatriates.

  • 14. I am non-resident in India. Is it mandatory for me to file ITR even if income doesn’t exceed basic exemption limit?

    No, NRI is not liable to file their return of income if it doesn’t exceed the basic exemption limit or no income received in India.

    We guide you when your liability to file your return of Income arises in India.

  • 15. Can I maintain more than one NRE account in India?

    Yes, NRI can open more than NRE account but with different banks in India. You can have multiple accounts with the same bank but account type is different like NRE, NRO, FCNR account.

  • 16. I am a non-resident and have donated in PM National Relief Fund. Am I eligible to get deduction u/s 80G?

    Yes, NRIs are eligible to claim a deduction for social causes u/s 80G subject to the qualifying limit prescribed. Deduction for donations made under this section is available for residents as well as non-residents.

  • 17. What are list of investments that are not allowed fir deduction u/s 80C?

    Here is a list of investments that are not eligible for deduction u/s 80C: -

    a. Investments in PPF is not allowed

    b. Investment in NSCs

    c. Post office 5-year deposit scheme

    d. Senior citizen saving scheme

  • 18. Can NRIs get Aadhar Card?

    Now, NRIs can also apply for Aadhar without waiting for 182 days. But it is not mandatory for them to get Aadhar even if they complete 182 days of residence in India.

  • 19. What are issues facing by expatriate to obtain Tax Residency Certificate (TRC)?

    The expatriate is facing timing difference issues for the issuance of TRC. Some countries issue TRC at the end of the Financial Year, the employee deputed in other countries may face hardship in taking relief under DTAA.

    We will help to get relief by placing reliance on other documents like a copy of foreign ITR which are helpful to prove the residency.

  • 20. Should I need to disclose the assets located outside India in ITR form as an expats?

    Yes, as per the latest ITR form, you need to disclose your financial assets located outside India along with an overseas Tax Residency Certificate. If you are a director or shareholder in an unlisted company, you also need to disclose the same in your ITR.

    We will file your return of income disclosing all the requirements mentioned in the ITR form so that no discrepancies arise further.