Moving to India - Tax implications
#1
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Joined: Feb 2012
Posts: 4
Moving to India - Tax implications
Hi,
Apologies if others have asked this question before.
I have an offer from my MNC employer to transfer to India this summer. Need advise on UK tax implications if I move. Specifically, if I were to return to the UK in 3-4 years time when my Indian assignment is complete, will I be taxed on the savings I take with me back to the UK?
Many thanks.
Apologies if others have asked this question before.
I have an offer from my MNC employer to transfer to India this summer. Need advise on UK tax implications if I move. Specifically, if I were to return to the UK in 3-4 years time when my Indian assignment is complete, will I be taxed on the savings I take with me back to the UK?
Many thanks.
#2
Re: Moving to India - Tax implications
Hi Cwlee
Welcome to BE and congratulations on your job offer in India - it will certainly be a great experience.
I'm sorry I can't answer your question rearding tax implications, although it would seem unfair to tax your savings made in India if you have already paid Indian tax on your earnings.
My advice would be (unless someone on here can advice you accurately) contact your local tax ofice and ask the question - at least that way you will know the answer is correct.
In the meantim, we are getting more and more folk on the India forum who are moving to Mumbai, so please stick around hre as you may meet sopm new friends as well as get good advice and tips about living and working in Mumbai.
All the very best with your plans
Dread - x
Welcome to BE and congratulations on your job offer in India - it will certainly be a great experience.
I'm sorry I can't answer your question rearding tax implications, although it would seem unfair to tax your savings made in India if you have already paid Indian tax on your earnings.
My advice would be (unless someone on here can advice you accurately) contact your local tax ofice and ask the question - at least that way you will know the answer is correct.
In the meantim, we are getting more and more folk on the India forum who are moving to Mumbai, so please stick around hre as you may meet sopm new friends as well as get good advice and tips about living and working in Mumbai.
All the very best with your plans
Dread - x
#3
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Joined: Jan 2012
Location: Mumbai India
Posts: 6
Re: Moving to India - Tax implications
I think it depends a lot on the currency you will be paid in...i am considering that since its a short term project,you will be paid in gbp ,but i reckon you talk to a tax man in uk first
#4
Lost in BE Cyberspace
Joined: Apr 2010
Posts: 20,711
Re: Moving to India - Tax implications
Hi,
Apologies if others have asked this question before.
I have an offer from my MNC employer to transfer to India this summer. Need advise on UK tax implications if I move. Specifically, if I were to return to the UK in 3-4 years time when my Indian assignment is complete, will I be taxed on the savings I take with me back to the UK?
Many thanks.
Apologies if others have asked this question before.
I have an offer from my MNC employer to transfer to India this summer. Need advise on UK tax implications if I move. Specifically, if I were to return to the UK in 3-4 years time when my Indian assignment is complete, will I be taxed on the savings I take with me back to the UK?
Many thanks.
#5
Just Joined
Thread Starter
Joined: Feb 2012
Posts: 4
Re: Moving to India - Tax implications
Hi Cwlee
Welcome to BE and congratulations on your job offer in India - it will certainly be a great experience.
I'm sorry I can't answer your question rearding tax implications, although it would seem unfair to tax your savings made in India if you have already paid Indian tax on your earnings.
My advice would be (unless someone on here can advice you accurately) contact your local tax ofice and ask the question - at least that way you will know the answer is correct.
In the meantim, we are getting more and more folk on the India forum who are moving to Mumbai, so please stick around hre as you may meet sopm new friends as well as get good advice and tips about living and working in Mumbai.
All the very best with your plans
Dread - x
Welcome to BE and congratulations on your job offer in India - it will certainly be a great experience.
I'm sorry I can't answer your question rearding tax implications, although it would seem unfair to tax your savings made in India if you have already paid Indian tax on your earnings.
My advice would be (unless someone on here can advice you accurately) contact your local tax ofice and ask the question - at least that way you will know the answer is correct.
In the meantim, we are getting more and more folk on the India forum who are moving to Mumbai, so please stick around hre as you may meet sopm new friends as well as get good advice and tips about living and working in Mumbai.
All the very best with your plans
Dread - x
Many thanks,
Cwlee
#6
Just Joined
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Joined: Feb 2012
Posts: 4
Re: Moving to India - Tax implications
Best, Cwlee
#7
Just Joined
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Joined: Feb 2012
Posts: 4
Re: Moving to India - Tax implications
Thank you. Yeah, will talk to a tax man. The HMRC website was very detailed but for me quite confusing. Best, Cwlee
#8
Re: Moving to India - Tax implications
Thanks Dread - x. That's useful advice. I will contact my tax guys in UK and India to understand this better. Btw, we are also debating the Mumbai vs. Delhi question. We have 2 young children (6/2) and are exploring which city has better schools. Appreciate any suggestions.
Many thanks,
Cwlee
Many thanks,
Cwlee
I think your choice of city to move to is dependant on you and your family identifying what you want your lifestyle to be like when you are there and then just do as much research on each place as possible. Having not lived in either I am not the one to advise - but one good thing about being in India as an expat is that it is not too expensive to get away to different places for a weekend - certainly some weekend trips to beaches in Goa will make the kids happy, but there are also beaches not far outside of Mumbai too, and some trips to elephant and tiger sancturies will give a real wow factor.
However that's not about your question of where to live - I would advise you start a new thread on here asking for people to give information on each city as that may help you to decide.
All the best - whichever one you choose will be a great experience I am sure
Dread - x
#9
Re: Moving to India - Tax implications
Thanks Dread - x. That's useful advice. I will contact my tax guys in UK and India to understand this better. Btw, we are also debating the Mumbai vs. Delhi question. We have 2 young children (6/2) and are exploring which city has better schools. Appreciate any suggestions.
Many thanks,
Cwlee
Many thanks,
Cwlee
This may be useful to you for Tax implications. Its not exactly updated paper but may help understand the system.
http://www.pwc.com/en_IN/in/assets/p...g-in-india.pdf
Theres also this Income Tax Dept website http://www.incometaxindia.gov.in/home.asp
Best to consult the accountant of the company you plan to join. They will have complete updated info.
As for the Mumbai or Delhi question, well...both are good although Mumbai would probably be better for you socially, my personal view. But then that would also depend on where the Company wants you to be based right?
Hope this info helps
#10
Re: Moving to India - Tax implications
Hi,
Apologies if others have asked this question before.
I have an offer from my MNC employer to transfer to India this summer. Need advise on UK tax implications if I move. Specifically, if I were to return to the UK in 3-4 years time when my Indian assignment is complete, will I be taxed on the savings I take with me back to the UK?
Many thanks.
Apologies if others have asked this question before.
I have an offer from my MNC employer to transfer to India this summer. Need advise on UK tax implications if I move. Specifically, if I were to return to the UK in 3-4 years time when my Indian assignment is complete, will I be taxed on the savings I take with me back to the UK?
Many thanks.
re: tax, there is a double taxation agreement between India and UK so as Bipat says you have to pay the higher of the two rates. Next year the annual income bands will probably be:
-> 2lakh 0%
2-5 lakh 10%
5-8 lakh 20%
over 8 lakh 30%
There is also EPF (Provident Fund) contributions which I hear under current 'reciprocal' rules you get back when you're 58.
You need to open the right sort of bank a/c for your salary payments etc. and keep all your TDS (= PAYE) receipts. When you are leaving take them and a lot more stuff to an accountant to certify you have paid all tax and you should be ready to go!
hth AndyD 8-)₹