I am a US citizen and resident holding an OCI card. I am employed with a US-based technology company. Every year, I usually visit India for two to three weeks. This time, I plan to visit India in February 2026 for an additional 15–20 days to attend a family function. However, during this visit, I will need to continue working remotely for my employer. Will this create any tax complications for me in India?
– Name withheld on request
Given that your stay in India will be less than 60 days during the year, you are expected to continue qualifying as a non-resident for Indian tax purposes, including for FY26.
For a non-resident, Indian taxation is limited to income that accrues or arises in India, is deemed to accrue or arise in India, or is received or deemed to be received in India. Salary income is generally taxable in India if the services are rendered while the individual is physically present in India. Accordingly, since you will be performing services while in India, the income would ordinarily be regarded as having accrued in India and would be taxable in India, irrespective of where it is paid.
However, Indian tax law provides a specific exemption for salary received by a non-resident foreign citizen from a foreign employer for services rendered during a short stay in India, subject to the following conditions:
(i) the employer is not engaged in any business in India;
(ii) the individual’s stay in India does not exceed 90 days during the relevant financial year; and
(iii) the remuneration is not deductible from the employer’s income chargeable to tax in India, if any.
As these conditions appear to be satisfied in your case, the salary received from your US employer for the period you work remotely while in India should be exempt from Indian tax. Accordingly, the income earned during your February 2026 visit would not be taxable in India.
I am a 60-year-old resident Indian and would like to gift approximately ₹30 lakh to my daughter, who is a non-resident Indian (NRI). I wish to credit the amount to her NRO account in India, as I do not want the hassle of foreign remittance. Is TCS applicable on this transfer?
– Name withheld on request
A gift transferred from your Indian bank account to your daughter’s NRO account would technically fall within the scope of remittances under the Liberalised Remittance Scheme (LRS). Consequently, the tax collected at source (TCS) provisions would become applicable.
Since the proposed gift of ₹30 lakh exceeds the prescribed threshold, the authorised dealer bank is required to collect TCS at the rate of 20%.
That said, in current practice, many banks are not collecting TCS on such rupee-denominated gift transfers. If TCS is nevertheless collected, it does not represent a final tax cost. The amount may be claimed as a credit against your tax liability or as a refund while filing your income-tax return for the relevant financial year, subject to your overall tax position.
Harshal Bhuta, is Partner, P. R. Bhuta & Co. CAs
