India: Short-term assignees subject to new tax clearance requirement in Gurgaon

Residential Permits for short-term assignees on assignments up to six months

These permits 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 a 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 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.