Before you start

PAN card
Understanding of your residential status for the financial year
Records of foreign income and any tax paid abroad
Awareness of the April-to-March financial year

Step-by-step

1
Get the PAN card first
Without it, tax is deducted from your salary at a higher rate and you cannot file. Foreign nationals can apply online.
OnlineWho: YouWeek 1
2
Work out your residential status for the year
182 days or more in the financial year makes you resident, as does 60 days plus 365 across the preceding four years. Resident status generally brings worldwide income into scope; there is also an RNOR category with narrower scope that applies in specific circumstances.
OnlineWho: You
3
Understand that the financial year runs April to March
India's tax year is 1 April to 31 March, not the calendar year. Arrivals from calendar-year countries consistently miscount their days and misjudge which year income falls into. Count from April.
OnlineWho: You
4
Choose between the new default regime and the old one
The new regime under section 115BAC is the default: lower rates with very few deductions. The old regime allows house rent allowance, section 80C investments and other deductions but at higher rates. For a foreign professional renting in Mumbai, the house rent allowance exemption under the old regime can be substantial — model both.
Via employerWho: You
5
Check the tax treaty with your home country
India has an extensive treaty network providing relief from double taxation. Benefits are claimed, and generally require a tax residency certificate from your home country. Arrange that before you need to file, because obtaining one retrospectively is harder.
OnlineWho: You
6
File by the deadline and keep Form 16
Your employer issues Form 16 summarising salary and tax deducted. Returns are filed online through the income tax portal. Note also Maharashtra's professional tax, a small monthly deduction levied by the state and separate from income tax.
OnlineWho: You

Documents you’ll need

PAN card
Form 16 from your employer
Passport with entry and exit stamps, for the day count
Tax residency certificate from your home country, for treaty claims
Records of foreign income and foreign tax paid

Things most newcomers don’t know

The financial year runs April to March, and this trips up everyone.

Almost every country these newcomers come from uses a calendar or mid-year tax year. India's runs 1 April to 31 March. It changes which year your arrival income falls into, how the 182-day count works, and when you file. Miscounting days across the wrong twelve months is the most common newcomer error.

Source: Income Tax Department — residential status

The new regime is the default, so you must actively choose the old one.

Since AY 2024-25 the section 115BAC regime applies unless you opt out. It has lower rates and very few deductions. For someone paying Mumbai rents, the house rent allowance exemption available only under the old regime can outweigh the lower headline rates — but you have to elect it, and the election has timing rules.

Source: Income Tax Department — salaried individuals

House rent allowance is a large deduction and Mumbai gets the highest rate.

Under the old regime, salaried employees can exempt part of a house rent allowance, and the formula gives metro cities a higher percentage than non-metros. Mumbai qualifies as a metro. For a foreign professional paying six figures of rupees in rent monthly, this is a material sum — and it only exists in the old regime.

Source: Income Tax Department — tax rates

Treaty relief usually needs a tax residency certificate from home.

India's treaty network is extensive, but claiming benefits generally requires a tax residency certificate issued by your home country's authority, plus Form 10F. Getting one after the fact is significantly harder than arranging it while you still have a relationship with that tax authority. Do it before you leave.

Source: Income Tax Department — non-resident FAQs

Common mistakes to avoid

Counting your days against a calendar year rather than April to March.
Staying in the default new regime without modelling the old regime's house rent allowance exemption.
Filing without a PAN, or letting tax be deducted at the higher no-PAN rate.
Not obtaining a tax residency certificate from your home country before moving.
Forgetting Maharashtra's separate professional tax deduction.

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.