This document summarizes a discussion on the interplay between immigration and tax laws. It outlines the different types of visas and their tax implications, the importance of proper documentation for immigration and tax purposes, and the consequences of non-compliance with immigration and tax laws. Key points covered include the differences between employment and business visas, how visa type impacts tax obligations, examples of required tax documentation for immigration, and penalties for non-compliance with immigration or tax regulations, such as fines, deportation, or prosecution.

1. 1
Premium
sponsor
Gold
sponsor
Exhibitors
Immigration and Tax – the Interplay and
principles to consider
Lead Speaker – Amarpal Chadha
Panelists - Sruthi Ananthachari, Stephen Rao & Hemamalini
Venkatraman

2. 2
Premium
sponsor
Gold
sponsor
Exhibitors
Topic of Discussion
 Impact of Visa on tax
 Tax Documentation for Immigration purposes
 Importance of being compliant to Immigration laws
 Importance of being compliant to tax laws

3. 3
Premium
sponsor
Gold
sponsor
Exhibitors
Impact of Visa on tax
 Which is the appropriate Visa – Business or Employment Visa?
 Thin line of difference between Business and Employment Visa
 Instances of non-compliance in terms of the activity undertaken by individuals.
For example, the India rules for Employment and Business Visa are as follows:
Employment Visa Business Visa
Issued only to highly skilled/qualified professional Issued for visits for setting up business
Not granted for jobs where qualified Indians are
available/routine clerical jobs
For purchase/sell commercial
products/meetings/discussions/attending board meetings
Salary should be in excess of USD 25,000 p.a Not granted for full time employment, money lending
business, etc

4. 4
Premium
sponsor
Gold
sponsor
Exhibitors
Impact of Visa on tax – Continued..
Key tax
Implications
Individual
Tax
Corporate
Tax
Social
Security
PE
Exposure
Service tax
on cross
charge
Acceptance
by
authorities
of tax
concepts

5. 5
Premium
sponsor
Gold
sponsor
Exhibitors
Tax Documentation for Immigration
 Proper coordination with the tax and Immigration team for tax documentation
 No clear guidelines on documentation and the type of documents varies from location to location
 Immigration related information available for tax authorities (For example: Passport number to be provided in the
India Tax return forms)
Illustrative list of Tax related information to be submitted with the Immigration authorities in India
(Documentation varies region wise)
 PAN Card/Acknowledgement for PAN Application for FRRO registration
 Copies of tax returns, declaration of taxes paid for current year and copies of challans for Visa
extension
 Proof of PF contribution to be provided to FRRO – if salary is increased for Visa extension
 Salary confirmation (Annual Certificate and Monthly Certificate) for FRRO registration

6. 6
Premium
sponsor
Gold
sponsor
Exhibitors
Importance of being compliant to Immigration laws
 Non compliance of Immigration rules will have strict consequences for both employer and employee
 The authorities can exercise their general powers as follows:
 Impose monetary penalty on employer/employee
 Deport the employee
 Blacklist the employer
 Penalties and Prosecution proceedings could be initiated for non-compliance

7. 7
Premium
sponsor
Gold
sponsor
Exhibitors
Importance of being compliant to tax laws
 Non compliance of tax laws will attract penal and prosecution proceedings
 Some of the Non-compliances under the Indian tax laws:
Non Compliances Consequences
Non Compliance under the India Income tax Act
Concealment of income/Furnishing of wrong information 100 % of tax sought to be evaded and could levy
upto maximum of 300 % of tax
Non Compliance under the Black Money Act
Concealment of overseas income/asset 3 times the amount of tax
Failure to furnish ROI within specified time or Failure to
furnish information/inaccurate information in ROI
INR 10 Lakhs
The Black Money law also imposes prosecution proceedings for certain offences with willful attempt to evade tax

8. 8
Premium
sponsor
Gold
sponsor
Exhibitors
Thank You