Expatriate Taxation Services for foreign nationals in India and Indians abroad.
Specialist tax advisory for foreign nationals working in India and Indian professionals working abroad — covering residential status determination, DTAA relief, shadow payroll, tax equalisation, Form 67 foreign tax credits, FEMA compliance, and end-to-end expatriate ITR filing by qualified Chartered Accountants in Mumbai.
Expatriate taxation sits at the intersection of two tax systems, two sets of social security laws, two currencies, and — in most cases — one Double Taxation Avoidance Agreement that determines which country has primary taxing rights over which income. Getting it wrong means double taxation in both jurisdictions, penalties for non-compliance in one or both countries, or FEMA violations from incorrect account types or remittance structures. Getting it right requires a tax advisor who understands both sides.
For multinational employers deploying talent into India, expatriate tax compliance involves shadow payroll computations, TDS under Section 192 on India-attributable salary, tax equalisation policy implementation, and accurate hypo tax computations for each assignee. For foreign nationals becoming Indian residents, global income must be reported, DTAA relief claimed in Schedule FSI, and Form 67 filed to claim foreign tax credits — all before the 31 July ITR deadline.
At NDS Advisors, we serve HR and mobility teams at multinational companies, individual foreign nationals on long-term India assignments, Indian professionals returning from overseas or managing income in both jurisdictions, and NRIs transitioning back to resident status. Our expatriate tax practice combines income tax expertise, FEMA advisory, and DTAA structuring — providing a single point of compliance for complex cross-border situations.
Our Expatriate Taxation Services
Residential Status Determination
Day-count analysis under Section 6 for foreign nationals and returning Indians — determining Resident, NR, or RNOR status and its impact on global income taxability in India.
Expatriate ITR Filing & Form 67
ITR-2 filing for expatriates — Schedule FSI for foreign income, DTAA benefit claims, and Form 67 for foreign tax credit on taxes paid in the home country.
Shadow Payroll & TDS Compliance
Shadow payroll computation for India-attributable salary, TDS deduction and deposit under Section 192, and quarterly TDS return filing — fully compliant with Indian payroll tax rules.
Tax Equalisation & Hypo Tax
Design and implementation of tax equalisation policies — hypothetical home-country tax (hypo tax) computation, gross-up calculations, and year-end true-up reconciliation for employers.
Social Security & PF Advisory
EPF applicability analysis for foreign workers, Certificate of Coverage eligibility under Social Security Agreements, and advisory on exemption from Indian provident fund contributions.
FEMA & Repatriation Compliance
Advisory on FEMA-compliant bank account types, permissible repatriation of salary and savings, immovable property rules for foreign nationals, and RBI reporting obligations.
Our Expatriate Tax Process
Residency & DTAA Analysis
Residential status computed from day-count records, applicable DTAA identified, and treaty benefit entitlements mapped to each income type.
Income Package Review
Total compensation package reviewed — base salary, offshore components, allowances, equity, and benefits — to determine India-taxable vs exempt portions.
Shadow Payroll & TDS
Monthly shadow payroll computation, TDS deduction and deposit under Section 192, and quarterly TDS returns filed — with Form 16 issued at year end.
ITR Filing & Form 67
ITR-2 filed with Schedule FSI, DTAA relief claimed, and Form 67 filed for foreign tax credits — ensuring no double taxation on cross-border income.
FEMA & Year-End True-Up
Repatriation compliance verified, year-end tax equalisation true-up computed, and any refund or additional tax settled between employer and assignee.
Why Choose NDS Advisors for Expatriate Tax
Frequently Asked Questions
Residential status under Section 6 is determined by days of physical presence in India. A person is Resident if present for 182 days or more in the financial year, or 60 days in the year and 365 days in the preceding four years. An Indian citizen with income exceeding ₹15 lakh from Indian sources becomes a deemed resident if not taxable in any other country. Non-Resident status means only Indian-sourced income is taxable.
A foreign national as a Resident is liable on global income at slab rates. As NR or RNOR, only Indian-sourced income — salary accrued in India, rental income, capital gains, and NRO interest — is taxable. DTAA benefits can reduce or eliminate double taxation on the same income in the home country.
Tax equalisation ensures an expatriate pays no more or less than they would have paid at home — the employer bears excess host-country tax above the hypo tax and reclaims savings where host-country tax is lower. Implementation requires hypo tax computation, shadow payroll, and home and host country coordination — all of which we manage for multinational employers.
A shadow payroll is a parallel payroll calculation in India to correctly compute and withhold income tax on an expatriate's remuneration — even when salary is paid abroad. It is required when the compensation package includes offshore salary, foreign allowances, and equity income, ensuring the Indian entity meets its TDS obligations under Section 192.
EPF applies to foreign workers in establishments with 20+ employees — unless covered by a Social Security Agreement (SSA) between India and their home country. India has SSAs with Germany, Japan, South Korea, Sweden, Belgium, and others. Expatriates from these countries may be exempt from Indian PF contributions with a Certificate of Coverage from their home country.
FEMA governs cross-border capital flows, bank account types, and repatriation of funds for residents and foreign nationals in India. Expatriates must maintain correct account types (NRE, NRO, or resident accounts), repatriate through appropriate channels, and comply with remittance limits. FEMA violations attract penalties up to three times the amount involved.
An Indian professional abroad may become NR or RNOR after two consecutive years of non-resident status. As NR or RNOR, only Indian-sourced income is taxable in India — foreign salary is not. We help Indian professionals determine correct residency status and structure their India-sourced income efficiently.
A foreign expatriate taxable in India must obtain PAN, determine the correct ITR form (typically ITR-2), compute India-sourced taxable income, claim DTAA relief under Schedule FSI, and file by 31 July. Form 67 must be filed to claim Foreign Tax Credit for taxes paid in the home country. We handle the complete process — PAN, DTAA analysis, Form 67, and e-verification — entirely online.
Cross-Border Taxation Made Certain
Residency status, DTAA relief, shadow payroll, tax equalisation, FEMA — our expatriate tax team navigates every complexity of India cross-border taxation for individuals and multinational employers.
Talk to an Expat Tax Expert or call +91 9819 000 511