Recent Immigrant Tax Services in India | Savlana Init

Transition Planning · Recently Arrived

Recent Immigrant Services — Arrived. Registered. Compliant.

You have moved. Now the Indian system needs a PAN, a residential status, a payroll position, a treaty claim and a first return. We set all of it up in the right order.

The first year in India generates more compliance than any year that follows. A Permanent Account Number must be obtained before salary can be processed without penal deduction under Section 206AA. Residential status has to be settled, because it determines whether your foreign salary, foreign investment income and foreign property income enter the Indian computation at all. Employer payroll must be set up on the correct basis. Advance tax may be payable in instalments on income the Indian payroll does not see. And the first return will need positions taken that are difficult to reverse later.

Foreign nationals arriving on Indian employment face an additional layer. Salary for services rendered in India is taxable in India regardless of where it is paid or in which currency, and split payrolls — part paid at home, part paid in India — do not change that. Employer-provided accommodation, cars, schooling, home leave and relocation allowances are perquisites valued under prescribed rules that rarely match the home-country treatment. Equity awards vesting in India are taxed on a time-apportioned basis. Social security contributions may be governed by a bilateral totalisation agreement rather than by ordinary provident fund rules.

Returning Indians and long-stay expatriates who qualify as resident but not ordinarily resident get materially better treatment in the early years, which makes an accurate status determination the first task rather than an afterthought. Where you become ordinarily resident, Schedule FA disclosure of foreign bank accounts, securities, immovable property and beneficial interests becomes mandatory, and the penalty regime for omission under the black money legislation is severe and not proportionate to the amounts involved. We set the whole framework up in the correct sequence — registration, status, payroll, treaty documentation, disclosure and filing.

Our Recent Immigrant Services

PAN Registration on Arrival

PAN application under Form 49A or 49AA with the documentation and attestation appropriate to your nationality, filed before the first payroll cycle.

First-Year Status Determination

Section 6 analysis for the year of arrival and the following years, establishing whether you are non-resident, not ordinarily resident, or ordinarily resident.

Expatriate Payroll Set-Up

Advice to you and your employer on taxable salary, perquisite valuation, split payroll treatment, tax equalisation and monthly deduction under Section 192.

Foreign Income Treatment

Assessment of which foreign salary, pension, rental, interest and dividend streams enter the Indian computation, based on your status for the year.

Equity Award Taxation

Treatment of stock options, restricted stock units and similar awards granted abroad and vesting or exercised while you are in India, including apportionment.

Treaty Relief and Form 67

Application of the relevant treaty article, tie-breaker analysis where two countries claim you, and foreign tax credit claimed through Form 67 in time.

Foreign Asset Disclosure

Preparation of Schedule FA once ordinary residence begins, covering foreign accounts, custodial and equity interests, immovable property and trusts.

Advance Tax and Return Filing

Computation and payment of advance tax instalments on income outside payroll, and preparation of the first Indian return with positions properly documented.

Our Process

Registration and Onboarding

PAN is obtained, the e-filing account is created, and Indian bank accounts and payroll details are linked so that deduction runs at the correct rate.

Status and Scope Determination

We fix your residential status for the year of arrival and establish exactly which income streams India can tax as a result.

Payroll and Withholding Alignment

Employer withholding under Section 192 is aligned to the true position, including perquisites and any income the Indian payroll does not capture.

Treaty and Credit Positioning

Treaty residence is settled, the Tax Residency Certificate and Form 10F are obtained where relevant, and Form 67 is planned for foreign tax credit.

Filing and Disclosure

Advance tax is paid on schedule and the first return is filed with all applicable schedules, including Schedule FA where ordinary residence has begun.

Why It Matters

✓PAN in place before the first payroll runs at the penal rate

✓First-year status settled before any position is locked in

✓Perquisites valued under Indian rules, not home-country assumptions

✓Split payroll and tax equalisation handled on the correct basis

✓Equity awards apportioned properly across jurisdictions

✓Foreign tax credit secured through timely Form 67 filing

✓Schedule FA disclosure started when due, avoiding severe penalties

✓Advance tax paid on schedule, avoiding interest under 234B and 234C

Frequently Asked Questions

Obtain a PAN. Without it, salary and most other payments suffer deduction at the Section 206AA rate, and no return or refund is possible. In parallel, establish your residential status for the year of arrival, because that determines whether your foreign income is taxable in India at all, and align employer withholding to the correct position before the payroll cycle begins.

It depends on your status. If you are resident but not ordinarily resident, foreign income is generally outside the Indian net unless derived from a business controlled in or a profession set up in India. Once you become ordinarily resident, worldwide income is taxable, with credit available for foreign tax paid under the applicable treaty. Salary for services rendered in India is taxable here from day one regardless of status or where it is paid.

Employer-provided accommodation, motor cars, domestic staff, education for children, home leave passage and similar benefits are valued under prescribed rules in the Income Tax Rules and added to salary. The Indian valuation basis often differs materially from home-country treatment, so packages structured abroad frequently produce an unexpected Indian liability unless reviewed before the assignment begins.

The perquisite arises on exercise or vesting, computed on the difference between fair market value and the amount paid. Where the grant-to-vest period spans service in more than one country, the benefit is generally apportioned by reference to the period of service in each. Foreign tax paid on the same benefit may be creditable under the treaty, subject to filing Form 67 with supporting evidence within the prescribed time.

It applies to individuals who are resident and ordinarily resident. Non-residents and residents who are not ordinarily resident are outside it. Once it applies, all foreign bank accounts, custodial accounts, equity and debt interests, immovable property, trusts and signing authorities must be disclosed for the relevant period, whether or not they generated income. Non-disclosure carries penalties under the black money legislation that are severe and disproportionate to the sums involved.

Yes, where tax payable after credit for tax deducted at source exceeds ten thousand rupees in the year. Recent immigrants commonly have income the Indian payroll does not capture — foreign rental income, foreign interest, capital gains — and on that income advance tax must be paid in the prescribed instalments. Shortfall attracts interest under Sections 234B and 234C, which is avoidable with a proper estimate.

Recently moved to India and unsure where to start?

We will get your PAN in place, settle your residential status, align payroll and treaty position, and file the first return with the disclosures it actually requires.