<aside> 📝 Description When filing the income tax returns for your expatriate employees, it is imperative to adhere to the applicable reporting requirements to ensure an accurate and compliant filing process. This section summarises two key reporting requirements for expatriates in India that must be disclosed while filing their tax returns.

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Key Reporting Requirements for Expatriates:

In addition to the regular reporting of the income earned in India , expatriate employees are also required to disclose their foreign assets and income details as mentioned in the below two cases:

1. Expatriates with income above INR 5 million

Expatriates who’s total income exceeds ₹ 5 million must report their assets and corresponding liabilities incurred in relation to such assets in the Assets and Liabilities Schedule of the tax return form.

While expatriates qualifying as Non-Residents(NRs) or Not Ordinary Residents (NORs) are required to only disclose their Indian assets, Ordinary Resident expatriates must report both Indian and foreign assets.

The following assets and liabilities are required to be reported in the Schedule AL:

• Immovable properties: such as land or buildings
• Movable Assets: such as jewellery, vehicles, paintings, shares and securities, insurance policies, cash in hand, etc.
• Liabilities: any liabilities related to the reported assets

2. Expatriates Qualifying as Ordinary Residents of India(RORs)

Expatriates qualifying as Ordinary Residents of India are taxed on their global income. Therefore, irrespective of their income level, they must disclose their foreign income and various foreign assets held during the calendar year ending on December 31st. These include:

• All foreign accounts held outside India along with the interest earned
• Financial interests in any foreign entities
• Immovable properties owned outside India