Can an Indian Work for a Foreign Employer from India? Navigating Offer Letters, Salary, and Taxes

Dear Team, Please advise on the following:

Employment of an Indian by a Foreign Employer

Is it possible to issue an offer letter to an Indian to work in India for his foreign employer? Is he allowed to receive their salary in his account, which is transferred from abroad? How does the employee pay income tax on his earnings? How does he pay his PF and other statutory remittances since the employer doesn't have an office in India?

Thanks,

Prakash

The details given in the post are fragmentary and not clear. If the foreign businessman does not have any branch in India, why should he engage the services of the Indian national in India as an employee for his business? He can very well be engaged as an agent. One has to pay income tax for whatever money is received in India. PF is applicable only to establishments coming under the purview of the Act. Please provide elaborate details.

Thank you for the reply. The appointment is purely for marketing a product to Indian clients, and the individual will work stationed in India with remuneration transferred from abroad. Could you please advise on how the candidates will manage their income tax, considering the employer is paying their salary as gross (all-inclusive)? Additionally, what about their PF and Gratuity, etc.?

Thank you,

Prakash

Regards