Filing Income Tax as the Sole Employee of a Foreign Company in India: What Do I Need?

Dear All,

I am working for a foreign company, taking care of their India Operations. I am the only employee of that company. I want to know what details are required to fill the Income Tax Return as I don't receive any Form 16 and other documents. Please explain in detail if anybody has some idea on this.

With Best Regards,
Hardik Vyas

Hi Hardik,

In case you are drawing a salary from the Indian subsidiary (registered under the Companies Act, 1956) of the foreign company, the Indian entity has to follow Indian laws, including Indian taxation laws. The Indian subsidiary has to generate a Form 16 and issue that to you. It is the company's responsibility.

However, in case you are being paid from abroad, the same needs permission from the RBI and may have different taxation implications like the double-taxation norm, FBT, etc.

Again, there are lots of unanswered queries like where and how do you get your salary from; is the payment given as salary or under any other expense head; what is your status in the company (employee/expat on deputation/placement, business status, etc.); what sort of engagement letter has been issued to you; what is your pay structure like (Indian salary/benefits/perks or overseas benefits (base pay, pension plan, medical/dental/insurance cover, vacation pay, etc.), etc.

If you want direct advice, you may wish to call me on the phone number given below, and I will help you.

Rahul
09968270580

Hi Rahul,

Thanks for the information. Could you please guide me on Tax holiday in the UK and what does it mean? Your response is highly appreciated.

Thanks in advance.

Regards,
Sheetal