NRI - OCI - PIO Guide & Information

145. Income tax liability for OCI holder in India & UK Q: Hi, I am a British Citizen and I hold OCI card. We are planning to return to India and start all over again. I assume that I am fully eligible to work in private sector as I hold the OCI card. How does the Indian tax system treats OCI card holder? Are the rules different to Indian citizens? Also, do I have to pay tax in India for the returns on investment made in UK? Any input is greatly appreciated. Regards, Raj A. The Indian tax system will treat you the same way as Indian residents are treated for taxation purposes. Before leaving UK you should notify the tax authorities in UK of your intention of leaving UK that you will be considered as a non-resident for UK tax purposes. Normally this notification is done by filling form P85. You can see a sample of form P85 HERE. You may also consider checking out 'Residents and non-residents Liability to tax in the United Kingdom' Check section 2.7 'Leaving the UK permanently or indefinitely' The link to the document is provided HERE (Link Removed, See update below) As far as your investments in UK are concerned an accountant can give you professional advice on the best method of declaring this income so as to minimize the tax impact. Good luck with your move to India. Update Feb 12, 2012: The document 'Residents and non-residents Liability to tax in the United Kingdom' has been replaced as it was updated in February 2010. A link to the new document is provided HERE