Working after you move back to India
Many returnees keep working, at least for a few years. Here are the main options, what each pays and costs, and the tax rules people often miss.
The short version
A job in India
- With an Indian company or a global company's Indian office
- Salaries are lower in absolute terms, but so are costs
- Notice periods of 60 to 90 days are normal
A transfer with your employer
- Move to your company's Indian office
- Keeps your seniority, and often your benefits
- Ask early: many companies offer it
Remote work or freelancing
- Work for an employer or clients abroad from India
- Taxed in India, because the work is done here
- Your employer may need an Indian setup to employ you
The options side by side
| Job in India | Remote for an employer abroad | Freelancing for clients abroad | |
|---|---|---|---|
| Pay | Indian salary levels | Often closer to pay abroad | You set your rates |
| Tax in India | Deducted by the employer | You pay it yourself (advance tax), unless the employer sets up payroll in India | Taxed as business income; simple presumptive scheme available |
| Benefits | Provident fund, health cover, gratuity | Depends on the employer's setup | None: arrange your own |
| Paperwork | Low | Employer may need an "employer of record" or Indian entity | GST registration above ₹20 lakh a year; exports can be zero-rated |
The tax rules people miss
- Work done in India is taxed in India, even if the employer and the bank account are abroad, and even in your RNOR years.
- Your employer abroad may refuse remote work from India because it can create tax and legal obligations for them in India. Ask before you move, not after.
- Freelancers and consultants can use the presumptive scheme, which taxes 50% of receipts as income, if receipts are up to ₹50 lakh a year (₹75 lakh if almost all are received through banks).
- Getting paid from abroad: keep the bank's inward remittance advice for each payment; it's proof of export of services for GST and tax.
- Tax paid abroad on the same income can be credited in India under tax treaties (Form 67).
Which suits you?
- You want stability and benefitsA job in India, or a transfer to your employer's Indian office.
- You have a senior role and a supportive employerRemote work, through an employer of record so tax and benefits are handled properly.
- You have skills clients pay forConsulting or freelancing; it also works well part-time in early retirement.
- Your spouse wants to restart a careerStart the search before you move; networks and referrals matter a lot in India.
Questions
Can I keep working for my employer abroad after moving to India?
Only if your employer agrees. Many need an Indian entity or an employer of record to employ you properly. Your salary for work done in India is taxed in India either way.
Is my salary from abroad tax-free in my RNOR years?
No, not for work you do while living in India. RNOR status helps with income earned abroad, not with pay for work done in India.
How do Indian salaries compare with pay abroad?
Lower in absolute terms for most roles, often by half or more after converting currency. Costs are also lower, so compare what's left after living costs.
Do OCI cardholders need a work visa?
No. OCI cardholders can work in India in most jobs without a visa. Foreign citizens without OCI need an employment visa.
How is freelance income taxed in India?
As business or professional income. Many use the presumptive scheme, which taxes 50% of receipts, if receipts are within the limit. GST registration is needed above ₹20 lakh a year, but exports of services can be zero-rated.