Archive · 22 Sep 2025
Tax Implications for Indians Working Abroad, Receiving Pay in India
Imagine you work in China but some of your pay goes to your family in India.
Since you spend very little time in India each year, you are usually not considered an Indian resident for tax purposes.
Although the money is received in India, it technically might be taxable.
Luckily, there is an agreement between India and China to prevent double taxation.
If you pay taxes in China, the money sent to India likely will not be taxed again there.
You'll need a certificate from the Chinese tax authorities to prove you pay taxes in China, and submit a form in India to claim this benefit.
An Indian employed in China by a Chinese subsidiary of an Indian MNC.
The individual likely qualifies as a non-resident of India.
Salary income accrues in China because services are performed there.
Receipt of salary in India makes it technically taxable in India.
The India-China Double Taxation Avoidance Agreement (DTAA) may offer relief.
- Who
- An Indian employed in China by a Chinese subsidiary of an Indian MNC
- What
- Understanding tax implications for salary received in India.
- When
- Starting in the current year.
- Where
- China and India
- Why
- To determine if salary received in India is subject to Indian taxes.
- Individual's Employment
- Employed by a Chinese subsidiary of an Indian MNC
- Location of Employment
- China
- Tax Residency
- Likely Non-Resident in India (stays under 30 days/year)
- Tax Filing
- Filed in China
- Salary Payment
- Partial salary credited to an Indian bank account