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 at a higher rate and you cannot file. Foreign nationals can apply online.
OnlineWho: YouWeek 1
2
Work out your residential status
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.
OnlineWho: You
3
Count against April to March
India's financial year runs 1 April to 31 March. Arrivals from calendar-year countries consistently miscount and misjudge which year income falls into.
OnlineWho: You
4
Model the new regime against the old
The new regime under 115BAC is the default: lower rates, very few deductions. The old regime allows house rent allowance and section 80C deductions at higher rates — but Pune is a non-metro for the house rent allowance formula, so the exemption percentage is lower than Mumbai's despite the same state. Run both.
Via employerWho: You
5
Expect a Maharashtra professional tax line
The state levies a small monthly professional tax on salaried employees, deducted at source and separate from income tax — the same as in Mumbai.
Via employerWho: You
6
Arrange a tax residency certificate before you leave home
Claiming treaty relief generally requires a certificate from your home tax authority plus Form 10F. Getting one retrospectively is considerably harder.
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

Same state as Mumbai, but not a metro for house rent allowance.

Pune pays Maharashtra's professional tax exactly as Mumbai does, but the income tax house rent allowance formula treats only Mumbai, Delhi, Chennai and Kolkata as metros. So Pune gets the state's costs without the metro exemption rate. For someone comparing Maharashtra postings, it is a genuinely non-obvious asymmetry — though Pune's much lower rents more than compensate.

Source: Income Tax Department — tax rates

The financial year runs April to March, and it 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, changing both the day count and which year arrival income falls into.

Source: Income Tax Department — residential status

Maharashtra professional tax applies here exactly as in Mumbai.

A small monthly deduction levied by the state on salaried employees, appearing as its own payslip line. Unlike Delhi and Haryana, which charge none.

Source: Maharashtra Department of Goods and Services Tax

Treaty relief usually needs a certificate from your home authority.

India's treaty network is extensive, but claiming benefits generally requires a tax residency certificate from your home country plus Form 10F. Arrange it before you move.

Source: Income Tax Department — non-resident FAQs

Common mistakes to avoid

Counting your days against a calendar year rather than April to March.
Assuming Pune gets Mumbai's metro house rent allowance rate — it does not.
Filing without a PAN, or losing income to the higher no-PAN withholding rate.
Not obtaining a tax residency certificate from home before moving.
Being surprised by the Maharashtra professional tax line and assuming it is an error.

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