Expat Tax Compliance, Under Indian Income Tax Act, 1961

Expat Tax Compliance
An expatriate means a person based in a foreign country working in India (inbound) or a person based in India (likely Indian citizen) working abroad (outbound).

Under Indian Income Tax Act, 1961 (‘ITA’), incidence of tax depends on the residential status of the taxpayer, and the place and time of accrual or receipt of any income.

The income arising on account of employee- employer relationship is taxable as “Salary” and it includes salary, allowances, perquisites, provident fund contributions, income received from previous employers, retirement benefits, salary arrears, profits in lieu of salary, income on termination of employment etc.