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Moving to India - Tax implications

Moving to India - Tax implications

Old Feb 5th 2012, 9:16 am
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Default 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.
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Old Feb 5th 2012, 11:20 pm
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Default 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
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Old Feb 6th 2012, 5:09 am
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Default 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
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Old Feb 6th 2012, 6:32 am
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Default Re: Moving to India - Tax implications

Originally Posted by cwlee
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.
The basic Info. we were given is that it depends on the rate of taxation in India. If this is less than you would have paid in the UK you would have to pay the difference on money brought back to the UK. You would not be taxed twice.
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Old Feb 6th 2012, 8:28 am
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Default Re: Moving to India - Tax implications

Originally Posted by dreadsoc
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
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
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Old Feb 6th 2012, 8:30 am
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Default Re: Moving to India - Tax implications

Originally Posted by Bipat
The basic Info. we were given is that it depends on the rate of taxation in India. If this is less than you would have paid in the UK you would have to pay the difference on money brought back to the UK. You would not be taxed twice.
Thanks Bipat. That's useful. My preliminary web search made highly confused about the resident/non-resident and dom/non-dom status re. tax implications. Will also check with my UK and India tax guys to understand this better.
Best, Cwlee
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Old Feb 6th 2012, 8:31 am
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Default Re: Moving to India - Tax implications

Originally Posted by expat.frndly.indian
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
Thank you. Yeah, will talk to a tax man. The HMRC website was very detailed but for me quite confusing. Best, Cwlee
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Old Feb 8th 2012, 12:37 am
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Default Re: Moving to India - Tax implications

Originally Posted by cwlee
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
Hi 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
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Old Feb 8th 2012, 1:10 pm
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Default Re: Moving to India - Tax implications

Originally Posted by cwlee
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
Hello 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
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Old Feb 8th 2012, 4:07 pm
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Default Re: Moving to India - Tax implications

Originally Posted by cwlee
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.
Best not count your chickens - you have to get an Employment visa first <s>.
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-)₹
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