467. OCI holder from Canada

working in India - Income tax in

India

Questions: Dear Sir, Myself and my sibling are Canadian citizens by birth, but have completed all our studies in India. I have come back to Canada for post graduation recently. Both of us have PAN Cards and are also OCI card holders with Life Long VISA issued by Govt of India. I would like to know whether we need to apply for any other type of VISA, if we want to take up any job in the private sector, be it in business houses, industries or Private colleges and Private Universities. If we take up jobs in India what kind of income tax laws are applicable to us on our income? Please advice us. Revanth Ottawa, Canada Answer: OCI holders can work in India in the private sector without the requirement of other types of work visas. Income tax laws that apply to OCI holders working in India are the same as taxation laws applicable to Indian citizens. Any income you earn in India is taxable in India. The tax free threshold allowed to Indian citizens can also be claimed by OCI holders when filing their taxes in India. Some countries such as the United States of America tax their citizens world wide income. As you are Canadian citizens, if you declare your self as non-residents for taxation purposes in Canada, your income in India will normally not be taxed in Canada. Citizens of the United States however, who hold OCI and and have income in India, are liable to tax in the United States. They can use the Double Taxation Avoidance Agreements (DTAA) to reduce or perhaps even eliminate their US tax liabilities on their Indian income.