India: Short-Term Assignees Subject to New Tax Clearance Requirement in Gurgaon
Residential Permits for short-term assignees on assignments up to six months will now contain a new endorsement stating that a No Objection Certificate/Tax Clearance Certificate from the Indian Income Tax Department must be submitted at the Foreigners' Registration Office (FRO) in Gurgaon prior to final departure.
Affected nationals must therefore contact their tax consultant to apply for Tax Clearance Certificate. The special endorsement on the Residential Permit must then be cleared at the FRO in Gurgaon.
What This Means for Employers and Foreign Nationals
Foreign nationals holding Residential Permits in Gurgaon with the special endorsement will not be able to exit India without submitting a copy of the Tax Clearance Certificate and clearing the related endorsement.
Impacted assignees in Gurgaon should contact their tax advisor to obtain the Tax Clearance Certificate, and should contact their immigration professional for assistance with the clearance process.
We worked closely with Fragomen Immigration Services India (Pvt.) Limited ("Fragomen-India") to prepare this alert. It is provided for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to IndiaQueries_NewPolicy@fragomen.com.
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