|
Remittance facility for expatriate employees
Foreigners who are in regular employment in India may be divided in following two categories
- Employees of Indian firm/companies
- Employees deputed by foreign companies to their Indian office, branch subsidiaries, joint venture etc.
Foreign national (who are not permanently resident of India) who are in regular employment with Indian firms/companies are allowed to remit up to 75% of their net salary out of India. The net salary is calculated after deduction of contribution to provident fund etc., and taxes payable. Such foreigners should hold a valid employment visa. On special request, remittance in excess of 75% of net salary may also be allowed provided the foreign national is in receipt of perquisites in India such as free housing, conveyance and medical facilities and his family is resident outside India.
Employees deputed by foreign companies: For such category of employees, remuneration to the extent of 75% of the net salary is allowed to be paid outside India. The balance amount of salary may be paid in India. It must be pointed out here that income tax is payable in India on the full amount of salary irrespective of the fact that the salary is paid outside India.
|
