What an expatriate actually owes in Indian tax comes down almost entirely to one question: how many days have you spent in India, and in which years. Nationality barely enters into it.
The Income Tax Act doesn’t define “expatriate” anywhere, residential status under Section 6 is what actually determines your tax position, foreign national or Indian citizen alike. You’re a resident if you’re in India for 182 days or more in the financial year, or 60 days or more in that year plus 365 days or more across the preceding four years. Residents split further into two categories that matter a lot in practice: Resident and Ordinarily Resident (ROR), taxed on worldwide income, and Resident but Not Ordinarily Resident (RNOR), taxed mainly on Indian income, with most foreign income staying outside India’s reach. A newcomer to India typically stays NR or RNOR for their first two to three years here, which is real, time-limited planning room worth using deliberately rather than letting it lapse unused.
Section 6(1A) exists specifically to stop Indian citizens from arranging their affairs to avoid tax residency everywhere. If you’re an Indian citizen earning more than ₹15 lakh from Indian sources and you’re not liable to pay tax in any other country, you’re deemed a resident here, treated as RNOR rather than full ROR, but resident all the same.
Salary is taxed based on where the work is physically performed, not where the paycheque comes from or where the employer sits, so services rendered in India get taxed in India regardless of who’s paying. Foreign nationals classified as “International Workers” under the EPF scheme don’t get the wage ceiling that applies to domestic employees, PF contributions apply to full salary. That obligation can be waived if your home country has a Social Security Agreement with India and you provide a Certificate of Coverage from there. Watch the perquisite thresholds too: employer PF contributions above ₹7.5 lakh a year, and interest on your own contribution above ₹2.5 lakh a year, both become taxable in your hands.
Double taxation gets resolved through Form 67, filed before your return’s due date along with your Tax Residency Certificate, claiming credit for foreign tax already paid under the applicable DTAA or, absent a treaty, under Section 91. One thing worth clearing up directly: despite a lot of confused reporting since the Income Tax Act, 2025 introduced new departure-related forms, most expats and travellers do not need a Tax Clearance Certificate before leaving India. That requirement is now reserved for specific high-risk situations, not a blanket rule for anyone boarding an international flight.
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Based on residential status under Section 6. Spending 182+ days in India = Resident (worldwide income taxed). Fewer days = Non-Resident (only India-sourced income taxed).
The employer pays the expat’s Indian tax, but this is treated as a taxable perquisite that must be grossed up and reported in the ITR. Camantra computes and files these obligations for both employer and expat.
Yes, if a DTAA exists with the home country. Relief can be an exemption or tax credit. The expat must furnish a TRC and Form 10F to claim treaty benefits in India.
Depends on whether a Social Security Agreement (SSA) exists with the home country. Expats from SSA countries (e.g. Germany, Japan, Australia) can get a Certificate of Coverage exempting them from EPF. Others may need to enrol.
Obtain PAN, ensure correct TDS on salary, file ITR annually, and handle 15CA/15CB for fund repatriation. Camantra manages the full lifecycle including exit-year compliance and refund claims.