Whereas the government has made efforts to simplify and rationalise the tax structure relating to foreign com7panies, little appears to have been done for expatriate employees. It continues to be complex and complicated.
Foreign employees are ambassadors of their companies in India and should be treated with utmost care and consideration.
When they feel trapped in a maze of tax laws here, a definite message goes out that creates an anti-India climate.
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Thus, the foreign employees who could be an excellent source of revenue to the country like to keep away from India.
It must be remembered that a foreigner is not much bothered about the rate of tax in India because, in any case, Indian tax rates of are comparable with other countries.
What rattles them is the process of tax administration. It is necessary that tax procedures should be simplified.
A legislative amendment spelling out circumstances under which foreign income will be taxed in India is needed.
At present, a resident is liable to pay tax on his