Income tax for Indian leaving the country

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This query is : Resolved

Rohit Jaithliya (Querist)

20 October 2017 A person, lets say X earns 90K per month from US for research services provided in India. No TDS or Form 16 compliance is done here. Gross salary is the net salary. X wishes to leave India in January 2018 (for good uncertain years) and wants to know the income tax compliance. According to me, X has to pay income tax for the current financial year and fill up Form 30C for Income tax clearance certificate. What are some good tax saving investment options for X so that income from investment and the maturity of the investment doesn't become taxable in India? Are there any other compliance, like appointment of a legal representative in India?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

20 October 2017 According to me, X has to pay income tax for the current financial year and fill up Form 30C for Income tax clearance certificate.

Yes, you are correct.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

20 October 2017 What are some good tax saving investment options for X so that income from investment and the maturity of the investment doesn't become taxable in India?

Investment options are available as in the case of any other individual assessee - 80C deductions up to Rs.1.50 lacs.
I'd suggest that he invest the amount in a ELSS fund as the lock in period is 3 years and the gains will be tax free on redemption.

PPF: has a greater lock in and requires that you invest a minimum of Rs.500 p.a.and should be maintained for minimum 15 years.
ULIP/LIP: Absolute No as it does not serve any purpose.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

20 October 2017 NPS Investments are not tenable unless the assessee needs to build his nest egg.

In any case, ELSS will win hands down in my opinion

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

20 October 2017 Are there any other compliance, like appointment of a legal representative in India?

Once the assessee gets the clearance upon getting form 30C filed that absolves him of all tax liabilities and i dont see any reason to appoint one.

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

20 October 2017 Even though there is no requirements for appointment of legal representative, the assessee may still register any relative as a legal representative

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