—Guide
Indians Moving Abroad for Work: Tax Residency and What to Do Before Leaving
A checklist for Indians leaving for jobs abroad — residency in the year of departure, bank account redesignation, investments, PF and PPF, and avoiding double taxation.
Moving abroad for work changes your Indian tax status and triggers a set of practical tasks. Planning them before you leave avoids problems with banks, investments and tax later.
Residency in the Year You Leave
An Indian citizen leaving India for employment abroad is resident for the year only if they're in India for 182 days or more — the 60-day test doesn't apply to them. Leaving earlier in the financial year can make you non-resident for that year, so your foreign salary isn't taxed in India.
Bank Accounts
- Tell your bank about the change in status.
- Redesignate resident savings accounts as NRO accounts.
- Open an NRE account for money you send from abroad.
Investments
- Update KYC and residency status with depositories, brokers and fund houses. Some fund houses restrict investments from US and Canadian residents.
- PPF accounts can continue until maturity but can't be extended.
- Review insurance policies and the tax treatment abroad.
Provident Fund
You can leave your EPF balance or withdraw it under the rules. Interest may stop after a period of inactivity, and interest after leaving employment can be taxable. Consider the tax treatment in your new country too.
Taxes Abroad
Understand when you'll become tax resident in the new country and how it taxes Indian income. Tax treaties and foreign tax credits help avoid double taxation.
Before You Go
- File any pending Indian returns.
- Arrange a power of attorney for property or financial matters.
- Keep your PAN and Aadhaar active and linked.
- Keep records of assets and their cost.
Getting Help
Think Filing advises people moving abroad and files their Indian returns afterwards.