Foreigner resident indian income tax

[yujin kim]

Dear sir

Our company has one foreigner, he came to India in 2010.

now he lives here more than 1year so he is resident.

and he got employment visa for 1year and wanted to renew it .

For this, income tax return copy is compulsory.

But we receive the salary from outside of India.

so there is no any bank statement in India bank .

But for visa extension, bank statement & income tax return is compulsory.

We will pay income tax. we will assume the salary monthly is 1lac 10,000Rs.

But I want to know how to treat the bank statement submission?

Is it possible from company to employee give the salary and again employee return that money to company's account?

If income tax officer come for audit, this can be problem or not?

Please tell us best suggetion for this.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in this issue? If not please inform.

AI Summary

Tax residency and documentation: creating Indian bank evidence for visa renewal may trigger tax authority scrutiny. A foreign national resident in India lacks Indian banking entries because salary is paid from abroad; visa renewal requires an income tax return and Indian bank statement. The employer proposes paying salary into an Indian account and having the employee return the funds to create a bank trail, and queries whether such circular transfers would create problems if reviewed by income tax authorities, implicating proof of tax residency and documentary compliance for visa renewal.