Neutral impactEconomy
Moving back to India with a foreign job: will your salary be taxed here?
Mint 1 hr ago·29 Sept 2026, 3:41 pm
If you are an Indian citizen working abroad and return to India, you may face a new tax liability on your foreign salary. The Finance Act 2020 introduced a provision that taxes individuals on their global income if they are present in India for more than 182 days in a financial year. This means that even if your employer is based in Canada and your salary is paid into a foreign bank account, the income could be deemed to have been earned in India.
This change impacts the tax residency of returning NRIs and could lead to double taxation if the foreign country does not provide a tax credit. It is crucial for returning professionals to understand their new tax status and plan their finances accordingly to avoid unexpected liabilities.
Investors should monitor the government's stance on tax treaties and any potential clarifications that might ease the compliance burden. Keeping track of these developments is important for making informed decisions about employment and financial planning.
Excerpt from Mint
An NRI returning to India may become taxable on salary for services rendered from India, even if the employer is Canadian and the salary continues to be credited to a Canadian bank account. I am an NRI who has lived and worked in Canada since 2015. I have returned to India permanently in September 2026 while…Read the original at Mint
Key takeaways
- Category: Economy.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
