Employment visa or OCI

sreeusa · Mar 6th, 2008, 22:47

I have a question:

1. I have a job offer in Delhi, India
2. I am a US citizen ( of indian origin)
3, I am not too sure whether I should apply for a employment visa or a OCI status.
Would like to hear from forum members. What are the pluses and minuses for both.

Would I be able to repatriate some monies on a month to month basis to meet financial commitments like student loan repayments etc.

Wht would the income tax incldg social sec and medicare implications be?

Nick-H · Mar 6th, 2008, 23:30

I can make a suggestion on just one of those things:

OCI is for life. For tourism, study, employment, whatever, whenever, for the rest of your life.

An employment visa is limited to one company.

I'd go for the OCI!

(welcome to the site

)

sreeusa · Mar 6th, 2008, 23:44

thank u for the response and thank u for the welcome ...appreciate it....

Still need to know whether I can remit monies on a month to month basis on my post tax proceeds to meet my financial commitment...if it can be done on an OCI status ?...I couldn't ask for more....

crvlvr · Mar 7th, 2008, 00:04

As an NRI/PIO, regardless of visa status, you are now allowed to repatriate upto $1million yearly. So, that is no longer and issue. But, as Nick suggests, the OCI kills many birds with one stone.

Nick-H · Mar 7th, 2008, 00:06

Somebody answered this question very recently, and I've tried a search or three but couldn't find it.

I think that, these days, fairly generous sums of money can be sent out of India. Hopefully someone can repeat the information, or point to the post I couldn't find.

<cross-posted with Crvlvr>

crvlvr · Mar 7th, 2008, 03:14

As far as tax obligations, India tax code applies like the Us code.. If you earn it in the country you have pay all the taxes there. Which means you are liable for all Indian taxes.

You still will have to file US taxes and indicate that the taxes on your income have already been paid in India.

the opoponax · Mar 7th, 2008, 03:38

Isn't it important to clarify whether sreeusa is 'of Indian origin' in the sense of being ethnically South-Asian, or 'of Indian origin' in the sense of having a PIO card?

Because not everyone who identifies as Indian-American would actually be considered an NRI for tax purposes.

crvlvr · Mar 7th, 2008, 04:36

Quote:

Originally Posted by the opoponax

Because not everyone who identifies as Indian-American would actually be considered an NRI for tax purposes.

If the OP is eligible for a OCI card then he is a PIO and will be eligible for the $1M repatriation limit.

sreeusa · Mar 7th, 2008, 05:06

thank u for the responses...appreciate it....
1 I am of Indian origin and was a citizen of india till 2002.

If I enter India on a OCI status, work, receive emoluments I will still be required to file tax returns in the US. Do we have double taxation relief and the taxes that have already been paid in India given a credit for? What about social security and medicare contributions? Will that still not be reqd to be paid ( double contribution --- as applicable for self employed )

How do I get to remit to the US on a monthly basis to meet my financial commitment here?

sreeusa · Mar 7th, 2008, 05:11

sorry to continue my previous post....

Do I have to just ask the bankers to remit directly to my account in the usa or do I need approvals from RBI etc.etc.
Will the remittance be done on the normal exchange rates ot will there be a penalty etc.

I was told by someone that I need to be on a work permit if I need to remit part of my earnings, to an overseas accunt ....hence this question

thank u guys ...appreciate your inputs immensely

Nick-H · Mar 7th, 2008, 10:31

It is very hard to get good information on the tax stuff: if you are sufficiently well-paid you could go to one of the big multi-national accountancy firms, who, I'm sure, can do this stuff with their eyes shut. I doubt that I could even afford to go through the front door, even in India.

shere · Mar 8th, 2008, 16:02

Get an employment visa to begin with and apply for OCI as well. It can take upto a year to get OCI.

Nick-H · Mar 8th, 2008, 16:42

Gosh, I didn't know that! My PIO took a week!

Mar 6th, 2008, 22:47	#1
sreeusa Member Join Date: Mar 2008 Location: usa Posts: 4	Employment visa or OCI I have a question: 1. I have a job offer in Delhi, India 2. I am a US citizen ( of indian origin) 3, I am not too sure whether I should apply for a employment visa or a OCI status. Would like to hear from forum members. What are the pluses and minuses for both. Would I be able to repatriate some monies on a month to month basis to meet financial commitments like student loan repayments etc. Wht would the income tax incldg social sec and medicare implications be?

Mar 6th, 2008, 23:30	#2
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 25,012	I can make a suggestion on just one of those things: OCI is for life. For tourism, study, employment, whatever, whenever, for the rest of your life. An employment visa is limited to one company. I'd go for the OCI! (welcome to the site ) __________________ . Just one member of the IndiaMike Mod Team

Mar 7th, 2008, 00:04	#4
crvlvr Guru Join Date: Sep 2004 Location: Hollywood Posts: 4,364	As an NRI/PIO, regardless of visa status, you are now allowed to repatriate upto $1million yearly. So, that is no longer and issue. But, as Nick suggests, the OCI kills many birds with one stone. Last edited by crvlvr : Mar 7th, 2008 at 05:53.

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Mar 6th, 2008, 23:44	#3
sreeusa Member Join Date: Mar 2008 Location: usa Posts: 4	thank u for the response and thank u for the welcome ...appreciate it.... Still need to know whether I can remit monies on a month to month basis on my post tax proceeds to meet my financial commitment...if it can be done on an OCI status ?...I couldn't ask for more....

Mar 7th, 2008, 00:06	#5
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 25,012	Somebody answered this question very recently, and I've tried a search or three but couldn't find it. I think that, these days, fairly generous sums of money can be sent out of India. Hopefully someone can repeat the information, or point to the post I couldn't find. <cross-posted with Crvlvr>

Mar 7th, 2008, 03:14	#6
crvlvr Guru Join Date: Sep 2004 Location: Hollywood Posts: 4,364	As far as tax obligations, India tax code applies like the Us code.. If you earn it in the country you have pay all the taxes there. Which means you are liable for all Indian taxes. You still will have to file US taxes and indicate that the taxes on your income have already been paid in India.

Mar 7th, 2008, 03:38	#7
the opoponax Maha Guru Member Join Date: Mar 2007 Location: Brooklyn, via New Orleans Posts: 1,054	Isn't it important to clarify whether sreeusa is 'of Indian origin' in the sense of being ethnically South-Asian, or 'of Indian origin' in the sense of having a PIO card? Because not everyone who identifies as Indian-American would actually be considered an NRI for tax purposes.

Mar 7th, 2008, 05:06	#9
sreeusa Member Join Date: Mar 2008 Location: usa Posts: 4	thank u for the responses...appreciate it.... 1 I am of Indian origin and was a citizen of india till 2002. If I enter India on a OCI status, work, receive emoluments I will still be required to file tax returns in the US. Do we have double taxation relief and the taxes that have already been paid in India given a credit for? What about social security and medicare contributions? Will that still not be reqd to be paid ( double contribution --- as applicable for self employed ) How do I get to remit to the US on a monthly basis to meet my financial commitment here?

Mar 7th, 2008, 05:11	#10
sreeusa Member Join Date: Mar 2008 Location: usa Posts: 4	sorry to continue my previous post.... Do I have to just ask the bankers to remit directly to my account in the usa or do I need approvals from RBI etc.etc. Will the remittance be done on the normal exchange rates ot will there be a penalty etc. I was told by someone that I need to be on a work permit if I need to remit part of my earnings, to an overseas accunt ....hence this question thank u guys ...appreciate your inputs immensely

Mar 7th, 2008, 10:31	#11
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 25,012	It is very hard to get good information on the tax stuff: if you are sufficiently well-paid you could go to one of the big multi-national accountancy firms, who, I'm sure, can do this stuff with their eyes shut. I doubt that I could even afford to go through the front door, even in India.

Mar 8th, 2008, 16:02	#12
shere Maha Guru Member Join Date: Mar 2004 Location: England Posts: 1,103	Get an employment visa to begin with and apply for OCI as well. It can take upto a year to get OCI.

Mar 8th, 2008, 16:42	#13
Nick-H Loud-mouthed, Noisy Bird Join Date: Oct 2004 Location: Chennai, India Posts: 25,012	Gosh, I didn't know that! My PIO took a week!

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