P K DE & Associates

Taxable Income Of Expatriates

The term ‘Expatriate Tax’ is not defined under the Income Tax Act, 1961. However, in general terms, expatriate means a person who is living outside the country of his origin or where a country of which he does not hold citizenship. He may be residing in another country temporarily or permanently which is generally dependent upon the conditions of the deputation where the word “deputation” means deputing or transferring an employee to a post outside his cadre on a temporary basis.

Under the Income Tax Act, 1961 the incidence of tax depends on the following:

Taxable Income Of Expatriates

The term ‘Expatriate Tax’ is not defined under the Income Tax Act, 1961. However, in general terms, expatriate means a person who is living outside the country of his origin or where a country of which he does not hold citizenship. He may be residing in another country temporarily or permanently which is generally dependent upon the conditions of the deputation where the word “deputation” means deputing or transferring an employee to a post outside his cadre on a temporary basis.

Under the Income Tax Act, 1961 the incidence of tax depends on the following:

Special provisions for foreigners

In the legal context there are no specific legislative restrictions on the type of skills that may be brought in nor the numbers of staff. However, under Government Policy employment visas to foreigners are issued only for jobs requiring high skills and expertise.

Statutory deductions

The Government authorities dealing in issues relating to expatriate employment in India are the Ministry of Home Affairs and RBI In general, employers who are employing expatriates in India must satisfy the following conditions:

Employment Visas

All foreign nationals who enter India must obtain an appropriate visa from an overseas Indian Consular Post in their home country prior to entering India. A Foreigner entering India for the purpose of employment must possess a valid employment visa. An Employment Visa is given only for jobs that require very high level of skills and expertise.

Expatriate remuneration

The authorized capital is the capital limit authorized by the Registrar of Companies up to which the shares can be issued to the members / public, as the case may be. The paid up share capital is the paid portion of the capital subscribed by the shareholders.A valid passport.

Special provisions for foreigners

In the legal context there are no specific legislative restrictions on the type of skills that may be brought in nor the numbers of staff. However, under Government Policy employment visas to foreigners are issued only for jobs requiring high skills and expertise.

Statutory deductions

The Government authorities dealing in issues relating to expatriate employment in India are the Ministry of Home Affairs and RBI In general, employers who are employing expatriates in India must satisfy the following conditions:

Employment Visas

All foreign nationals who enter India must obtain an appropriate visa from an overseas Indian Consular Post in their home country prior to entering India. A Foreigner entering India for the purpose of employment must possess a valid employment visa. An Employment Visa is given only for jobs that require very high level of skills and expertise.

Expatriate remuneration

The authorized capital is the capital limit authorized by the Registrar of Companies up to which the shares can be issued to the members / public, as the case may be. The paid up share capital is the paid portion of the capital subscribed by the shareholders.A valid passport.

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