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Tax Implications on Money Transfer between NRI and Resident
A very common query I come across of NRI’s settled outside is regarding the India tax implication of the transfer of money – to the NRI as well as the person to whom transfer is made. Today, I will be clarifying on this aspect using different scenarios. First things first: Clarify on the nature of…
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Foreign company deputing employees to India: Possible tax issues
Many foreign companies set up business in India through a wholly owned subsidiary structure. The foreign company generally also provides an initial set up support to the subsidiary staff by deputing its employees to such subsidiary for a definite period. Simple as it seems, this arrangement can bring a host of tax complications. In this…
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Taxation of foreign companies in India: An Overview
Given the India story, the question amongst the foreign companies is not “Why India” but “Why not India” – and hence we see that almost every multinational has a presence in India in some or other form This brings us to the question of taxation – how will a foreign company be taxed in India?…
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Taxation of UK Individual Savings Accounts (ISA) in India
Recently I was working on a tax opinion for a returnee doctor formerly employed in NHS UK. (Also read: Returning NRI Financial Checklist) During review of my client’s investments, I came across something known as an “Individual Savings Account (ISA)” in UK. Being tax free in UK, he did not bother to offer the income…
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How to calculate Residential Status for tax purposes in USA
Given the increase in global mobility of employees, tax consultants come across clients who are citizen /resident of another country or even multiple countries. Situation can become complicated when multiple countries have overlapping tax residency rules resulting in double taxation on the same income. A prime example of such cases is a country like USA…
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NRI Tax Return Filing Mistakes & How to Avoid Them
Tax return filing is not a complex work. It requires you to have a “fair” (not expert) understanding of tax laws applicable to you, your residential status for the year, any new changes brought about by the Finance Act etc. Also, my view is that an NRI with no taxable income should also keep filing…
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Taxability of salary received by an NRI seafarer in India
Seafarers are a category of professionals who face a lot of challenges regarding taxability of income, because of the nature of their work that requires them to be in international waters for a significant period of time and as a result, makes them classified as a non-resident as per the Indian tax residency rules (Also…
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Taxation of 401K/IRA (USA) in India
Important Note – This post is dated. Please check updated version here – https://abhinavgulechha.com/401k-traditional-ira-taxation-in-india/ Most of the returning NRIs from USA who have spent considerable time abroad have a good chunk of the total investment corpus invested in 401K plans and hence have a question on taxation of their 401K/IRA investments in India. 401K/ IRA…
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Taxation of ESOP/ESPP/RSU/SAR in India
Employee Stock Option (ESOP) Employee Stock Purchase Plan (ESPP)/Restricted Stock Units (RSU)/Stock Appreciation Rights (SAR) have become one of the most common forms of executive compensation over the past decade. It started from Information technology sector and gradually spread to other sectors as well. While the 2009 change in Income Tax Act (ITA) has clarified…
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[Sounderrajan Parthasarthy – ITAT Chennai] Income from Stock Appreciation Rights (SAR) from employer’s overseas parent company taxable in India
A lot of employers now-a-days offer innovative forms of employee compensation, with an intent to better align their personal interests with the company’s interests. Employee stock options or “sweat equity” is a common form of compensation widely established in the IT sector. Also read – Taxation of ESOP/ESPP/RSU/SAR in India However, some employers offer a…