Working from India for company in UK - is it possible?

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darwin29
Posts: 69
Joined: Wed Apr 26, 2017 11:58 pm

Working from India for company in UK - is it possible?

Post by darwin29 »

Hello,

So my wife(British Citizen + OCI) 's employer is agreeing for her to work from India on long term basis.

She will still be paid in her UK bank account as normal.

So the question is whether she will be liable to pay tax in india as well ?

I read online that global income is charged in india for every resident of india which means stayed in india for 182 days or more ?

SO that means is is true for first 6 months of stay in india there is no need to pay any tax in india ?

If after 6 months she starts paying tax on her UK salay income then how much does it turn on average if we say she earns 50,000 £ per annum i.e roughly 3000£ per month ?

Many thanks in advance.
dbs
Posts: 4100
Joined: Wed Jan 17, 2007 8:59 pm

Working from India for company in UK - is it possible?

Post by dbs »

darwin29;672985Hello,

So my wife(British Citizen + OCI) 's employer is agreeing for her to work from India on long term basis.

She will still be paid in her UK bank account as normal.

So the question is whether she will be liable to pay tax in india as well ?

I read online that global income is charged in india for every resident of india which means stayed in india for 182 days or more ?

SO that means is is true for first 6 months of stay in india there is no need to pay any tax in india ?

If after 6 months she starts paying tax on her UK salay income then how much does it turn on average if we say she earns 50,000 £ per annum i.e roughly 3000£ per month ?

Many thanks in advance.


Disclaimer: I am no tax expert or know much about it. Only some observations below.
Yes, Global income is chargeable for a resident. It is doubtful if you will get exemption for ist 6 months but I may be wrong.

50K pa means 4K+pm and not 3k pm. So I guess you are not an accountant.

tax on 50K pa will mean about Rs 90k pm as tax and may be considerably less based on deductions available.
3K pm could mean tax about 60k to 70k pm.

I would advise you to go for it. This is a very high salary for a resident Indian and one can live very very comfortably with this salary.

At the same time I guess she will have to pay tax/nic in the UK. That should be deductible from Indian tax or it may be the other way around. Consult a tax expert to understand how much, where and how the tax is to be paid, but go for it. If my wife earned this, I would cease working and retire in India.
darwin29
Posts: 69
Joined: Wed Apr 26, 2017 11:58 pm

Working from India for company in UK - is it possible?

Post by darwin29 »

Thanks dbs.

I said 6 months because definition of resident in India means person should have stayed for 182 days or more.

Hence i guessed probably no need to pay tax for first 6 months.

Anyways as said earlier salary will still be paid in UK bank account only.

Yes we will consider tax expert as you suggested and many thanks for inputs.
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