Expat Tax Services
Indian tax for foreign employees and their employers — from arrival to departure
- 1Before arrivalResidency, treaty and payroll structure planned with the employer.
- 2Set-upPAN, payroll TDS and PF or certificate of coverage in place.
- 3During the yearTDS reviewed, advance tax on foreign-paid salary.
- 4ReturnIndian ITR with treaty relief and Form 67 credit.
Share your details. We’ll reply on WhatsApp with the next steps and a checklist.
Pick a plan — the fee is adjusted if you hire us within 30 days.
About Expat Tax Services
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
A foreign national working in India is taxed on salary for work done here, wherever it is paid. Residents are taxed on worldwide income, but most new arrivals are 'resident but not ordinarily resident' (RNOR) for about their first two years, so foreign income stays outside Indian tax. Short assignments can be exempt under Section 10(6)(vi) or a tax treaty, and international workers join the Indian PF unless an SSA certificate covers them.
Expat assignments create work on both sides. The employer has to run payroll TDS on the full package — allowances, housing, school fees and any tax it pays for the employee, which is itself taxable and has to be grossed up — and issue Form 16. The employee needs an Indian return that lines up with the home-country return so the same income is not taxed twice.
Residential status drives everything. It is decided each year from days in India (182 days, or 60 days plus 365 days over the previous four years), and a resident is 'not ordinarily resident' if they were non-resident in 9 of the previous 10 years or spent 729 days or less in India in the previous 7. An RNOR is taxed only on Indian income; an ordinarily resident expat is taxed on worldwide income and must report foreign assets in Schedule FA.
We handle the whole cycle: residency and treaty analysis before arrival, PAN and payroll set-up, split-payroll and shadow-payroll TDS, PF for international workers or the certificate of coverage that exempts them, returns with foreign tax credit (Form 67), and the departure year — final return and the employer undertaking needed before leaving India.
FY 2025-26 (AY 2026-27) is governed by the Income-tax Act, 1961. From tax year 2026-27 the Income-tax Act, 2025 applies; section and form numbers change, but the residency, treaty and payroll rules work the same way.
| Taxable in India | Salary for services rendered in India, on home or host payroll |
|---|---|
| Residency | 182+ days, or 60+ days with 365+ days in the previous 4 years; RNOR in early years |
| Short-stay exemption | Section 10(6)(vi): up to 90 days, foreign employer with no business in India, cost not charged to an Indian entity |
| Treaty relief | Most DTAAs (Article 15) extend short-stay relief to 183 days |
| Tax paid by employer | Itself taxable salary — grossed up in payroll TDS |
| PF | International workers contribute on full pay unless covered by a social security agreement certificate |
| FRRO | Employment visas over 180 days: register within 14 days of arrival |
| Foreign assets | Ordinarily resident expats report them in Schedule FA; RNORs and non-residents do not |
| Foreign tax credit | Claimed with Form 67, filed by the end of the assessment year |
Who this is for
Common scenarios where this service is a good fit.
- Foreign nationals on assignment or local hire in India
- Employers and GCCs hosting expatriates
- Indian companies hiring foreign staff
- Foreign companies sending staff on short business trips
- Expats leaving India at the end of an assignment
What you get
Clear deliverables so you know exactly what's included.
- Residency, RNOR and treaty analysis
- Short-stay (Section 10(6)(vi) / Article 15) exemption review
- Payroll TDS, gross-up and shadow-payroll advice
- Form 16 and Indian return filing
- Foreign tax credit (Form 67) and DTAA relief
- Schedule FA foreign-asset reporting
- PF for international workers and certificate of coverage
- Departure planning and final return
Expert review before every submission — not just data entry.
Working notes and reconciliations you can rely on in future notices.
Resident Indians, NRIs, expats and cross-border businesses — all served.
Documents required
A practical checklist. We'll tell you if anything else is needed based on your case.
* This is a base checklist. After a quick pre-check, we may ask for additional items specific to your case.
Process
A simple, trackable workflow — designed to avoid back-and-forth.
Residency, treaty and payroll structure planned with the employer.
PAN, payroll TDS and PF or certificate of coverage in place.
TDS reviewed, advance tax on foreign-paid salary.
Indian ITR with treaty relief and Form 67 credit.
Final return and employer undertaking before leaving.
Get a quote
We share a clear quote on WhatsApp after a quick checklist pre-check.
- Per employee per year; employer retainers available.
| Factor | DIY | Indus Tax |
|---|---|---|
| Expert review | ❌ | ✅ |
| Notice risk reduction | ❌ | ✅ |
| Deduction optimisation | ❌ | ✅ |
| Audit-ready records | ❌ | ✅ |
| AIS/26AS reconciliation | ❌ | ✅ |
Share your facts and deadline. We'll reply with the right checklist and a clear quote.
- CA reads your case before the call
- DTAA, property, capital gains covered
- Written summary + checklist after
- Fee adjustable if you engage us
Frequently asked questions
Answers to the most common questions we get.
This page also covers
- Tax equalisation
- Hypothetical tax and gross-up for employer-borne tax.
- Shadow payroll
- Indian TDS on salary paid from the home country.
- Short-term business visitors
- 90-day and 183-day exemption tests.
- International workers' PF
- Contributions or certificate of coverage.
- Exit formalities
- Final return and the Form 30A undertaking.
Official sources
- Income Tax e-Filing portal
- Income Tax Department — DTAAs and rules
- EPFO — international workers and social security agreements
- Bureau of Immigration — e-FRRO registration
Indus Tax is a private professional services firm and is not affiliated with any government authority. Rules and fees change — we confirm current positions before filing.
