The number of expatriates employed by multinational corporates for short/long-term assignments in India has significantly increased. This trend continues to grow as companies seek global talent for their operations in the country.
The complexities of the tax system could result in higher tax costs, compliance and double taxation issues in relation to expatriates that need resolution. There is greater vigilance by the tax authorities in India, especially in the case of foreign employees. Further, as per the Indian income tax law, a person may be liable to tax on his global income in India after three to four years of his first arrival in India. This necessitates the need for planning at the initial stage itself.
