Saving Mantra Blogs

Category: Global Filing

  • Japanese Pension Refund for Indian Employees – Step-by-Step Process

    Step-by-Step Process for Japanese Pension Refund

    Step 1: Leave Japan & Deregister Residence

    • Submit Moving-Out Notification at the city office
    • Return residence card at airport immigration
    • Close local address registration

    Step 2: Obtain Pension Number

    Collect:

    • Pension handbook (Nenkin Techo) OR
    • Pension number from employer / pension office

    Step 3: Prepare Required Documents

    Documents required include:

    • Copy of passport (photo & exit stamp pages)
    • Pension number
    • Bank account details (overseas account allowed)
    • Filled Lump-Sum Withdrawal Payment Claim Form

    Step 4: Submit Lump-Sum Withdrawal Application

    • Submit application to Japan Pension Service
    • Mode:
      • By international post from India

    Step 5: Processing by Japan Pension Service

    • Authorities verify:
      • Contribution period
      • Exit status
      • Eligibility

    Processing Time:
    👉 3 to 6 months

    Step 6: Receive First Pension Refund (80%)

    • About 80% of refund credited directly to bank account
    • This amount is subject to 20.42% Japanese tax withholding

    Step 7: Claim Japanese Withholding Tax Refund (20.42%)

    To recover withheld tax:

    • Appoint a Tax Representative in Japan
    • File Japanese tax refund claim
    • Remaining 20.42% tax refunded

    Amount of Japanese Pension Refund

    Refund amount depends on:

    • Total contribution period
    • Salary level
    • Pension type

    Maximum claimable period:
    👉 Up to 5 years (60 months) of contribution

    Taxation & India–Japan DTAA

    • Pension refund is taxable in Japan initially
    • Withholding tax can be reclaimed
    • In India:
      • Refund may be taxable as income
      • DTAA relief may apply
      • Foreign Tax Credit available if tax not refunded

    Common Mistakes to Avoid

    • Missing the 2-year deadline
    • Incorrect bank details
    • Missing exit stamp proof
    • Not claiming tax refund
    • Wrong pension number

    How Saving Mantra Helps Indian Employees

    Saving Mantra provides end-to-end Japanese pension refund support, including:

    • Eligibility assessment
    • Pension refund application filing
    • Tax representative arrangement in Japan
    • Withholding tax refund claim
    • India tax impact & DTAA advisory

    Frequently Asked Questions (FAQs)

    Q1. Can I apply for Japanese pension refund from India?
    Yes, the application can be filed from India by post.

    Q2. What is the deadline to claim pension refund?
    Within 2 years from the date of leaving Japan.

    Q3. Can I get 100% pension refund?
    Yes, after claiming the withheld 20.42% tax refund, subject to eligibility.

    Q4. Is pension refund taxable in India?
    It may be taxable depending on residential status and DTAA relief.

    Disclaimer

    This article is for informational purposes only and does not constitute legal or tax advice. Japanese pension and tax rules may change. Consult Saving Mantra experts for accurate and personalized assistance.

  • Japanese Tax Return for Indian Employees – Step-by-Step Process

    Step-by-Step Process for Japanese Tax Return Filing

    Step 1: Determine Tax Residency

    • Count number of days stayed in Japan
    • Identify visa type and employment nature
    • Decide tax category (non-resident / resident)

    Step 2: Identify Taxable Income

    Taxable income may include:

    • Salary & wages earned in Japan
    • Bonuses and allowances
    • Overtime and incentives
    • Foreign income (for permanent residents)

    Step 3: Collect Required Documents

    Prepare the following:

    • Residence card (Zairyu Card)
    • Passport & visa details
    • Salary slips
    • Gensen Choshu Hyo (Withholding Tax Certificate)
    • Bank account details
    • My Number (Individual Number)

    Step 4: Check Employer Year-End Adjustment

    In many cases:

    • Employer performs Year-End Adjustment (Nen-matsu Chosei)
    • If fully adjusted, filing may not be mandatory

    However, filing is required if:

    • Multiple income sources exist
    • Foreign income needs reporting
    • Refund is expected

    Step 5: Apply India–Japan DTAA Benefits (If Applicable)

    • Avoid double taxation using DTAA
    • Salary may be taxable only in Japan
    • Claim Foreign Tax Credit (FTC) in Indian ITR

    Step 6: Prepare Japanese Tax Return

    • Calculate taxable income
    • Apply deductions & allowances
    • Compute national income tax & local inhabitant tax

    Step 7: File Tax Return with Japanese Tax Office

    • File Kakutei Shinkoku (Final Tax Return)
    • Filing modes:
      • Online (e-Tax)
      • Physical submission at tax office

    Due Date:
    👉 15th March of the following year

    Step 8: Pay Tax or Claim Refund

    • Pay balance tax (if any)
    • Refund credited to Japanese bank account

    Tax Rates in Japan (Indicative)

    Income SlabTax Rate
    Up to ¥1.95 million5%
    ¥1.95m – ¥3.3m10%
    ¥3.3m – ¥6.95m20%
    Higher slabsUp to 45%

    (Local inhabitant tax approx. 10% extra)

    Documents Required Summary

    • Passport & visa
    • Residence card
    • Salary statements
    • Gensen Choshu Hyo
    • My Number
    • Bank details

    Common Mistakes to Avoid

    • Ignoring local inhabitant tax
    • Wrong residency classification
    • Missing foreign income disclosure
    • Not claiming DTAA benefits
    • Late filing leading to penalties

    How Saving Mantra Helps Indian Employees in Japan

    Saving Mantra offers India–Japan tax compliance support, including:

    • Residency & DTAA analysis
    • Japanese tax return filing
    • Foreign tax credit advisory for Indian ITR
    • Salary structuring for expats
    • End-to-end global tax compliance

    Frequently Asked Questions (FAQs)

    Q1. Is Japanese tax return mandatory for all Indian employees?
    Not always. If employer completes year-end adjustment and no other income exists, filing may not be required.

    Q2. Can I claim Japanese tax paid in Indian ITR?
    Yes, through Foreign Tax Credit (FTC) under DTAA.

    Q3. What happens if I miss the Japanese tax return deadline?
    Late filing may attract penalties, interest, and loss of refunds.

    Q4. Do I need to file tax in both India and Japan?
    Yes, depending on Indian residential status, with DTAA relief to avoid double taxation.

    Disclaimer

    This article is for informational purposes only and does not constitute tax or legal advice. Japanese and Indian tax laws may change. Consult Saving Mantra professionals for personalized compliance.

  • German Pension Refund for Indian Employees: Eligibility, Process & Timeline

    Introduction

    Indian employees working in Germany contribute mandatorily to the German statutory pension system (Deutsche Rentenversicherung) through payroll deductions. However, many Indian professionals return to India or move to another country before completing the minimum contribution period required to receive a German pension.

    In such cases, eligible individuals can apply for a German Pension Refund (Contribution Refund). This SavingMantra guide explains who is eligible, how much can be refunded, and the step-by-step process to claim the refund.

    What Is German Pension Refund?

    A German pension refund is a one-time repayment of employee pension contributions made to the German statutory pension system when the contributor permanently leaves Germany and does not qualify for a future pension.

    ⚠️ Important:
    Only the employee’s share of contributions is refunded.
    The employer’s contribution is not refundable.

    Who Is Eligible for German Pension Refund?

    Indian employees may apply for a pension refund if all of the following conditions are met:

    • You are not a citizen of an EU / EEA country or Switzerland
    • You have left Germany permanently
    • You have not worked in Germany for at least 24 months
    • You have not completed 60 months (5 years) of pension contributions
    • You are not covered under a social security agreement (SSA) that allows pension portability

    Most Indian employees on short- to medium-term assignments qualify.

    When Can Indian Employees Apply?

    • Application can be filed after 24 months from the date you left Germany
    • Earlier applications are rejected automatically

    How Much Pension Refund Can You Get?

    • Refund = Employee’s pension contribution only
    • Approx. 9.3% of gross salary contributed by employee
    • Refund amount depends on:
      • Duration of employment
      • Salary level
      • Exchange rate at the time of payment

    Refund is paid in EUR to an international bank account.

    Step-by-Step Process for German Pension Refund

    Step 1: Confirm Eligibility

    Ensure that:

    • You have completed 24 months outside Germany
    • You are not eligible for German pension benefits
    • You are an Indian citizen (non-EU)

    Step 2: Collect Required Documents

    Commonly required documents include:

    • Completed Application Form for Refund of Contributions
    • Passport copy
    • German Tax ID (Steuer-ID)
    • Social Security Number (Rentenversicherungsnummer)
    • Proof of leaving Germany (Abmeldung certificate)
    • Indian address proof
    • Bank account details (IBAN/SWIFT)
    • Employment details / salary slips (if available)

    All documents must be clear and accurate.

    Step 3: Fill the Pension Refund Application Form

    The official form is issued by Deutsche Rentenversicherung.

    Details required:

    • Personal information
    • Insurance number
    • Period of employment in Germany
    • Overseas address
    • Bank details for refund

    Forms may need to be signed physically.

    Step 4: Submit Application to Deutsche Rentenversicherung

    Application can be submitted:

    • By post to the relevant German pension office
    • Through an authorized representative (recommended for overseas applicants)

    Online filing is limited for overseas refunds.

    Step 5: Verification by German Pension Authority

    The authority will:

    • Verify contribution records
    • Check exit date and nationality
    • Confirm eligibility

    They may request additional documents if required.

    Step 6: Approval & Refund Payment

    Once approved:

    • Refund is processed
    • Amount is transferred to your bank account in EUR
    • Processing time: 3 to 6 months (may vary)

    Tax Implications of German Pension Refund

    • Refund may be taxable in Germany
    • May also be taxable in India as income
    • DTAA between India and Germany may apply

    Professional tax advice is strongly recommended to avoid double taxation.

    Common Reasons for Rejection

    • Applying before completion of 24 months
    • Incomplete documentation
    • Incorrect bank details
    • Completion of 60 months contribution
    • Eligibility under social security agreements

    Conclusion

    The German Pension Refund is a valuable opportunity for Indian employees who worked in Germany for a limited period. With correct eligibility assessment, proper documentation, and timely filing, contributors can recover a significant portion of their pension contributions.

    SavingMantra provides end-to-end assistance for German pension refund applications, including eligibility check, form filling, documentation, and follow-up with German authorities.

    Disclaimer

    This blog is for general informational purposes only and does not constitute legal, tax, or financial advice. German pension laws, refund rules, and tax treatment may change. Applicants are advised to consult a qualified professional or official German pension authority before filing a refund claim. SavingMantra is not responsible for any actions taken based on this information.

  • German Tax Return for Indian Employees: Complete Guide & Filing Process

    Introduction

    Indian professionals working in Germany—whether on deputation, EU Blue Card, work visa, or local employment—are required to comply with German income tax laws. While taxes are often deducted at source through payroll, many Indian employees are still required or encouraged to file a German Tax Return (Einkommensteuererklärung) to claim refunds, deductions, or comply with statutory obligations.

    This SavingMantra guide explains who needs to file, documents required, and the step-by-step process for filing a German tax return for Indian employees.

    Who Needs to File a German Tax Return?

    Indian employees in Germany should file a tax return if:

    • They have multiple sources of income
    • They changed employers during the year
    • They received foreign income (India or other countries)
    • They want to claim tax refunds or deductions
    • They fall under Tax Class III, V, or VI
    • They received unemployment, maternity, or sick pay
    • They are self-employed or freelancers along with employment

    Even if not mandatory, filing often results in tax refunds.

    Tax Residency for Indian Employees in Germany

    You are considered a German tax resident if:

    • You stay in Germany for more than 183 days, or
    • You have a permanent residence in Germany

    German residents are taxed on worldwide income, subject to relief under the India–Germany Double Taxation Avoidance Agreement (DTAA).

    Key Taxes Applicable in Germany

    • Income Tax (Einkommensteuer)
    • Solidarity Surcharge (Solidaritätszuschlag)
    • Church Tax (Kirchensteuer) – if applicable
    • Social Security Contributions (pension, health, unemployment, nursing care)

    Step-by-Step Process for Filing German Tax Return

    Step 1: Obtain Your Tax Identification Number (Steuer-ID)

    Every taxpayer in Germany is issued a Steuerliche Identifikationsnummer (Steuer-ID).

    • Issued automatically after registration (Anmeldung)
    • Required for tax return filing and communication with tax authorities

    Step 2: Collect Required Documents

    Common documents required include:

    • Annual Salary Statement (Lohnsteuerbescheinigung)
    • Passport & residence permit
    • Steuer-ID
    • Bank account details (IBAN)
    • Rent agreement (for housing deductions)
    • Health insurance contribution details
    • Work-related expense receipts
    • Education or relocation expense proofs
    • Proof of foreign income (India)
    • DTAA-related documents (Form 10F equivalent, tax residency proof from India, if applicable)

    Step 3: Identify Eligible Tax Deductions

    Indian employees can claim deductions such as:

    • Work-related expenses (commuting, home office, laptop, internet)
    • Relocation costs
    • Professional training & certification fees
    • Health insurance contributions
    • Childcare expenses
    • Pension contributions
    • Double taxation relief under India–Germany DTAA

    Step 4: Choose the Mode of Filing

    You can file your tax return through:

    1. ELSTER Portal (Official Method)

    👉 https://www.elster.de/

    • Free government portal
    • German language
    • Requires registration & verification

    2. Tax Filing Software

    • WISO Steuer
    • Taxfix
    • Smartsteuer

    3. Tax Consultant (Steuerberater)

    Recommended for:

    • Foreign income
    • DTAA claims
    • First-time filers

    Step 5: File the Income Tax Return (Einkommensteuererklärung)

    Fill in:

    • Personal details
    • Employment income
    • Deductions & allowances
    • Foreign income disclosures
    • Bank details for refunds

    Submit the return electronically.

    Step 6: Track Assessment & Respond to Queries

    The German tax office (Finanzamt) may:

    • Ask for additional documents
    • Seek clarification
    • Issue a tax assessment notice (Steuerbescheid)

    Respond promptly to avoid delays.

    Step 7: Receive Tax Refund or Pay Additional Tax

    • Refunds are credited directly to your bank account
    • If tax is payable, payment must be made within the deadline mentioned in the notice

    Deadlines for Filing German Tax Return

    • 31 July of the following year (self-filing)
    • 28/29 February of the second following year (if filed via tax consultant)

    Late filing may attract penalties.

    Double Taxation Relief for Indian Employees

    Under the India–Germany DTAA:

    • Income taxed in Germany is generally exempt or credited in India
    • Proper disclosure in both countries is required
    • DTAA helps avoid paying tax twice on the same income

    Professional advice is recommended for DTAA claims.

    Conclusion

    Filing a German tax return is an important compliance and financial planning step for Indian employees working in Germany. With correct documentation, understanding of deductions, and DTAA benefits, many taxpayers can significantly reduce their tax burden or receive refunds.

    SavingMantra provides assistance with German tax return filing, DTAA advisory, foreign income disclosure, and cross-border tax compliance for Indian professionals.

    Disclaimer

    This blog is intended for general informational purposes only and does not constitute tax or legal advice. German tax laws, filing requirements, and DTAA provisions are subject to change. Readers are advised to consult a qualified tax advisor or Steuerberater before filing their tax return. SavingMantra is not responsible for any actions taken based on this information.

  • New Zealand Tax Return Filing – Step-by-Step Process for Indian Employees

    Step-by-Step Process for Filing New Zealand Tax Return

    Step 1: Confirm Filing Requirement

    • Check whether IRD has issued an auto-assessment
    • Verify if IR3 return filing is mandatory

    Step 2: Collect Income Information

    • Download income summary from IRD portal
    • Collect payslips and employer income statements
    • Gather overseas income details (if any)

    Step 3: Login to myIR Portal

    • Access the Inland Revenue myIR portal
    • Review income details reported by employers

    Step 4: Declare Additional Income

    • Declare overseas income
    • Add interest or investment income
    • Include any self-employment income

    Step 5: Claim Allowable Deductions

    • Claim eligible expenses (where applicable)
    • Adjust incorrect tax codes or PAYE deductions

    Step 6: Review Tax Calculation

    • System calculates tax payable or refund
    • Verify figures carefully

    Step 7: Submit Tax Return

    • Submit IR3 return online
    • Receive confirmation and acknowledgment

    Step 8: Receive Refund or Pay Tax

    • Refund is credited to bank account (if applicable)
    • Pay any outstanding tax before due date

    New Zealand Tax Year & Due Dates

    • Tax Year: 1 April to 31 March
    • IR3 Filing Due Date: Generally 7 July (may vary if extension applies)
    • Refunds are usually processed within 2–4 weeks

    Common Mistakes to Avoid

    • Not declaring overseas income
    • Using incorrect tax code
    • Ignoring IRD notifications
    • Missing filing deadlines

    Professional assistance helps avoid penalties and ensures accurate refunds.

    Benefits of Filing New Zealand Tax Return with SavingMantra

    • ✔ Expert handling for Indian employees
    • ✔ Accurate income & tax calculation
    • ✔ Overseas income reporting support
    • ✔ Refund maximization
    • ✔ End-to-end myIR assistance

    Why Choose SavingMantra?

    SavingMantra specializes in international tax compliance for Indian professionals. Our experts understand both Indian and New Zealand tax systems, ensuring correct reporting and peace of mind for employees working abroad.

    Frequently Asked Questions (FAQs)

    Is tax return filing mandatory for all employees in New Zealand?

    No. Some employees receive auto-assessment, but many must file IR3 returns.

    Do Indian employees need to declare income earned in India?

    Yes, overseas income may need to be declared depending on tax residency.

    How long does it take to get a tax refund in New Zealand?

    Usually 2–4 weeks after successful filing.

    Can SavingMantra help with past-year returns?

    Yes. We assist with backlog and revised New Zealand tax returns.

    Conclusion

    Filing a New Zealand Tax Return is an important compliance step for Indian employees working abroad. Accurate reporting ensures correct tax payment and timely refunds while avoiding penalties. With SavingMantra, you receive professional, reliable, and hassle-free tax return filing support in New Zealand.

  • New Zealand IRD Registration – Step-by-Step Process for Indian Employees

    Step-by-Step Process for New Zealand IRD Registration

    Step 1: Arrive in New Zealand

    • Enter New Zealand on a valid work or resident visa
    • Ensure visa conditions allow employment

    Step 2: Open a New Zealand Bank Account

    • Visit a local bank with passport and visa
    • Open a personal bank account
    • Obtain bank confirmation or account number

    Step 3: Gather Required Documents

    • Passport and visa copy
    • Proof of NZ address
    • Bank account details

    Step 4: Apply for IRD Number

    • Apply online through the Inland Revenue portal
    • Submit personal, visa, and employment details
    • Upload required documents

    Step 5: Verification by IRD

    • IRD verifies submitted information
    • Additional clarification may be requested

    Step 6: Receive IRD Number

    • IRD number is issued within 5–10 working days
    • IRD number is sent via email or post

    Step 7: Inform Employer

    • Share IRD number with employer
    • Employer updates payroll for correct tax deduction

    Tax Compliance After IRD Registration

    Once IRD number is issued, employees must:

    • Ensure correct tax code is applied
    • Check payslips for accurate tax deductions
    • File income tax return (if required)
    • Update IRD for change in address or job

    Common Mistakes to Avoid

    • Delaying IRD application after arrival
    • Providing incorrect visa or bank details
    • Using wrong tax code
    • Ignoring IRD communications

    Professional guidance helps avoid higher tax deductions and compliance issues.

    Benefits of IRD Assistance with SavingMantra

    • ✔ End-to-end IRD registration support
    • ✔ Guidance on correct tax codes
    • ✔ Assistance for Indian employees abroad
    • ✔ Accurate documentation & timely follow-up
    • ✔ Affordable and professional service

    Why Choose SavingMantra?

    SavingMantra specializes in international tax and compliance support for Indian professionals. Our experts simplify overseas compliance so you can focus on your career in New Zealand without tax worries.

    Frequently Asked Questions (FAQs)

    Is IRD number mandatory for Indian employees in New Zealand?

    Yes. Without an IRD number, employers deduct tax at a higher rate.

    Can IRD number be applied before reaching New Zealand?

    In most cases, IRD registration is done after arrival and opening a bank account.

    How long does IRD registration take?

    Usually 5–10 working days, subject to document verification.

    Do Indian employees need to file tax returns in New Zealand?

    It depends on income type and tax deducted. Some employees may need to file returns annually.

    Conclusion

    Obtaining an IRD number is the first and most important tax compliance step for Indian employees working in New Zealand. Timely registration ensures correct salary payments and avoids excess tax deductions. With SavingMantra, you receive professional, reliable, and hassle-free IRD registration support.

  • Australia Tax Return for Indian Employees – Step-by-Step Guide

    Introduction

    Indian employees working in Australia—whether on work visas, student visas, or short-term assignments—must lodge an annual Australia Tax Return with the Australian Taxation Office (ATO). Filing your tax return ensures correct reporting of income, claiming eligible deductions, and receiving refunds if excess tax was withheld. This guide explains the entire process in a simple, step-by-step format to help Indian professionals stay fully compliant.

    Who Must File an Australian Tax Return?

    You generally need to lodge a tax return if you:

    • Worked in Australia and earned income
    • Had tax deducted from your salary
    • Are considered an Australian resident for tax purposes
    • Have investment or bank interest income
    • Are leaving Australia permanently
    • Want to claim a tax refund

    Step-by-Step Process for Filing Australia Tax Return

    Step 1: Determine Your Tax Residency Status

    Australia has different tax rules for:

    • Resident for tax purposes
    • Non-resident
    • Temporary resident

    The ATO residency test depends on:

    • Length of stay
    • Purpose of visit
    • Employment contract
    • Accommodation arrangements

    Tax residency determines your tax rate and deduction eligibility.

    Step 2: Gather Required Documents

    Before lodging your return, collect:

    • Tax File Number (TFN)
    • PAYG Payment Summary / Income Statement from employer
    • Bank interest statements
    • Superannuation details
    • Visa category and passport information
    • Records of work-related expenses
    • Private health insurance statements (if applicable)
    • Investment or foreign income details

    Accurate documents help avoid errors and ATO revisions.

    Step 3: Check Income Types You Must Report

    Indian employees must report:

    • Salary/Wages
    • Allowances
    • Overtime
    • Bonus
    • Bank interest
    • Dividends
    • Part-time/side income
    • Overseas income (if tax resident)

    Non-residents report only Australian-sourced income.

    Step 4: Identify Eligible Deductions

    You can reduce your taxable income by claiming allowable deductions such as:

    • Work-related travel and transport
    • Professional tools, equipment, PPE
    • Mobile/internet used for work
    • Union fees, memberships, certifications
    • Work-from-home expenses
    • Self-education related to current job
    • Depreciation on laptops or devices
    • Donation receipts to registered charities

    Keep receipts or bank proofs for all claims.

    Step 5: Access MyGov & Link ATO Account

    1. Create a myGov account
    2. Link the Australian Taxation Office
    3. Verify identity (TFN, DOB, bank details, ATO notice number)
    4. Access pre-filled tax information

    This makes filing faster and error-free.

    Step 6: Lodge Your Tax Return Online

    Go to: myTax (inside myGov)
    Enter:

    • Personal details
    • Employment income
    • Deductions
    • Bank account for refund
    • Residency status
    • Investment or foreign income

    Review your return carefully and submit to ATO.

    Step 7: Track Status & Respond to ATO

    ATO processes returns usually within 2–4 weeks.
    During assessment:

    • ATO may request proof of expenses
    • You may be asked for identity verification
    • Refund is transferred to your Australian bank account

    Keep checking notifications in your myGov inbox.

    Step 8: Apply for Superannuation Refund (If Leaving Australia)

    Indian employees leaving Australia permanently may claim a DASP (Departing Australia Superannuation Payment).
    Requirements:

    • Passport
    • Super fund details
    • Visa cancellation/expiration

    DASP refunds are processed separately from tax refunds.

    Important Deadlines

    • Tax Year: 1 July – 30 June
    • Lodgment Deadline: 31 October
    • Extension: Available if using a registered tax agent

    Common Mistakes to Avoid

    • Incorrect residency declaration
    • Missing bank interest income
    • Claiming deductions without receipts
    • Not reporting overseas income (if resident for tax purposes)
    • Using wrong bank account for refunds
    • Not filing tax returns for previous years

    Saving Mantra Support

    Saving Mantra helps Indian employees and freelancers working in Australia with:

    • Tax residency assessment
    • Document preparation
    • ATO filing support
    • Deductions and refund maximization
    • Past year return corrections
    • Superannuation refund guidance

    Disclaimer

    This blog provides general information on the Australia Tax Return process for Indian employees. Tax rules, residency criteria, and deduction allowances are subject to change based on ATO regulations and individual circumstances. This content should not be treated as financial, tax, or legal advice. For case-specific assistance, consult a registered tax agent, ATO representative, or a qualified tax professional. Saving Mantra can provide general guidance but does not replace certified tax advisory.

  • Step-by-step: How to Get a U.S. EIN (for Indians)

    Quick summary

    An EIN is a 9-digit tax ID the U.S. IRS gives to businesses and other entities. Indians need an EIN when they form or operate a U.S. entity, hire U.S. employees, or have U.S. tax-reporting obligations (for example to file Form 1042/1042-S, payroll returns, or corporate tax returns). IRS

    Do you actually need an EIN?

    Common reasons Indians need an EIN:

    • You incorporated a U.S. company (LLC, C-corp, S-corp) and will file U.S. taxes.
    • You will hire U.S. employees or run payroll in the U.S.
    • You will pay U.S.-source income to foreign persons and must withhold or report (Form 1042/1042-S).
    • A U.S. bank asks for an EIN to open a business account.
      If none of the above apply, you probably don’t need an EIN — check first with your US adviser or bank. IRS

    Which form / route is used

    • Form SS-4 is the official application for an EIN. You’ll fill basic entity info, the “responsible party” details, purpose of the EIN, and contact details. IRS

    How Indians (outside the U.S.) can apply — step by step

    Step 1 — Prepare Form SS-4 details

    Have this ready before you call or send the form:

    • Legal name of entity, trade name (if any) and mailing address.
    • Entity type (LLC, corporation, partnership, trust, etc.).
    • Date business started / date of incorporation.
    • Name and details of the responsible party (the person who controls the entity). The IRS requires a real person — nominees are not recommended. IRS+1

    Step 2 — Choose your application method (pick one)

    A. By phone (fastest for international applicants)

    • If your principal place of business is outside the U.S., international applicants can call the IRS EIN number: +1-267-941-1099 (not toll free). This line operates Monday–Friday (check latest IRS hours). The IRS can assign the EIN over the phone during that call. Keep Form SS-4 filled so you can answer questions. IRS+1

    B. By fax (fast, common option)

    • Fax your completed Form SS-4 to the IRS international fax number (check the live IRS page for the correct fax for outside-U.S. filing). If you include a return fax number, the IRS will generally fax the EIN back in about 4 business days (timings may vary). IRS+1

    C. By mail (slowest)

    • Mail the signed Form SS-4 to the IRS EIN International Operation address. Expect about 4–6 weeks turnaround — allow extra time during busy seasons. IRS+1

    Important: The IRS online EIN application is generally not available to applicants whose principal place of business is outside the U.S., or if the responsible party does not have a U.S. SSN/ITIN. International applicants should use phone, fax, or mail. IRS+1

    Step 3 — Responsible party & ID notes

    • The SS-4 asks for the responsible party’s name and taxpayer ID (SSN/ITIN). If the responsible party lacks an SSN/ITIN, you still may apply — leave SSN/ITIN blank and explain on the fax or phone call. The IRS accepts these cases for foreign applicants; you do not have to get an ITIN first to get an EIN. IRS+1

    Step 4 — Third-party designee (optional)

    • If you want a U.S. lawyer, accountant or agent to receive the EIN on your behalf, complete the “Third-Party Designee” section on Form SS-4 and provide the designee’s contact details. The designee can receive the EIN directly. IRS

    Step 5 — After you get the EIN

    • Save the acknowledgement/fax confirmation or write down the EIN if granted by phone. Keep a copy of the filled SS-4. Use the EIN when opening U.S. bank accounts, filing payroll, or submitting U.S. tax returns. If contact details or responsible party change later, update IRS using Form 8822-B. IRS

    Timelines — what to expect

    • Phone: immediate (EIN issued during the call). Ebizfiling
    • Fax: typically about 4 business days if a return fax number is provided; can take longer. IRS+1
    • Mail: roughly 4–6 weeks (allow more time during peak periods). IRS+1

    Fees & official cautions

    • There is no fee charged by the IRS to apply for an EIN. Beware of third-party websites that charge you to submit the form. Use IRS pages or trusted advisers. IRS

    Practical tips (Saving Mantra advice)

    • If you need the EIN quickly, call the IRS international number early in their day — lines can be busy. Have Form SS-4 filled and scanned (if faxing later). Manay CPA
    • Don’t invent a “responsible party” — IRS expects a real person who can be contacted and whose identity is verifiable. Nominee entries can cause problems. IRS
    • If a U.S. bank insists on an EIN before account opening, get the EIN first and then use it to open the account; for banks that require an SSN/ITIN for signatories, discuss options with the bank (some banks accept non-U.S. signatories with alternative docs).
    • Always keep a signed copy of the SS-4 and the EIN acknowledgement for your records — you’ll need them for U.S. tax returns and bank/KYC. IRS

    Short checklist (ready)

    • Decide you need an EIN (incorporation, payroll, withholding, bank).
    • Fill Form SS-4 with accurate entity & responsible-party details. IRS
    • Choose method: phone (+1-267-941-1099), fax, or mail. IRS+1
    • Have ID & contact info of responsible party ready.
    • Save EIN confirmation and Form SS-4 copy; update IRS later with Form 8822-B if needed. IRS

    Short FAQ (common quick answers)

    Q: Can I apply online from India?
    A: No — the IRS online EIN tool is normally only available to applicants with a U.S. principal place of business and the responsible party’s SSN or ITIN. International applicants must use phone/fax/mail. IRS+1

    Q: Do I need an ITIN before applying?
    A: No. You do not have to get an ITIN first; the IRS assigns EINs to foreign applicants by phone/fax/mail without an ITIN. IRS+1

    Q: How long before I can use the EIN?
    A: If issued by phone or fax, you can use it immediately. If by mail, wait for the letter — but you can indicate “Applied For” on forms if a tax return is due. IRS+1

    Where to read official IRS guidance

    Primary IRS pages to bookmark and follow:

    • IRS — Employer Identification Number (main EIN page). IRS
    • IRS — About Form SS-4 (instructions & PDF). IRS+1

    Disclaimer

    This guide is for general informational purposes only. Rules, phone numbers, fax numbers, and processing times can change. Always verify the latest procedures on the official IRS website (irs.gov) before applying. For complex cases (cross-border tax issues, treaty questions, payroll withholding, or banking KYC), consult a qualified U.S. tax advisor, CPA, or immigration attorney. Saving Mantra is not responsible for actions taken on the basis of this guide.

  • Canada Tax Return for Indian Employees: Step-by-Step Guide

    Introduction

    Many Indian employees working in Canada—whether on a work permit, PR, or as remote workers for Canadian companies—must file an annual Canadian Tax Return. Filing ensures proper tax compliance, refund claims, benefit eligibility, and avoids penalties from the Canada Revenue Agency (CRA). This guide explains each step clearly for Indian professionals living or earning income in Canada.

    Who Must File a Canadian Tax Return?

    You must file if you:

    • Earned income in Canada (salary, contract income, business, investments)
    • Stayed in Canada for more than 183 days (resident for tax purposes)
    • Paid excess tax and want a refund
    • Received a notice from CRA
    • Want GST/HST credit or Canada Child Benefit (if eligible)

    Indian employees working remotely for a Canadian employer may also have tax obligations depending on residency status.

    Step-by-Step Process for Filing Canada Tax Return

    Step 1: Determine Your Residency Status

    CRA classifies individuals as:

    • Resident (most Indian workers on closed/open work permits fall here)
    • Non-Resident
    • Deemed Resident
    • Part-Year Resident

    Residency defines your tax rate, income to report, and deductions you can claim.

    Step 2: Gather All Required Documents

    Collect the following before filing:

    • T4 Slip (employment income)
    • T5, T3 (investment income)
    • T2200 (employment expenses, if applicable)
    • Rent receipts (province-specific credit)
    • RRSP contributions
    • Tuition fee receipts
    • Passport & visa details
    • SIN (Social Insurance Number)
    • Bank statements

    Indian employees returning to India must ensure they carry all tax slips received from their Canadian employer.

    Step 3: Create a CRA MyAccount

    Visit: https://www.canada.ca/en/revenue-agency/
    You need:

    • SIN
    • Canadian phone number or email
    • Identification proof

    This account helps track tax slips, refund status, assessments, and credits.

    Step 4: Choose a Filing Method

    You can file using:

    • NETFILE certified tax software (most common)
    • Paper return
    • Tax consultant
    • Saving Mantra Canada Tax Filing Support

    Most Indian employees prefer online NETFILE for faster refunds.

    Step 5: Prepare the Return

    Enter the following in your tax software:

    • Employment income (T4)
    • Deductions
    • RRSP contributions
    • Canada Pension Plan (CPP)
    • Employment Insurance (EI)
    • Provincial credits
    • Taxable benefits
    • Foreign income (if applicable)

    Verify all amounts with official CRA slips.

    Step 6: Claim Deductions & Credits

    Common claims for Indian employees:

    • RRSP contributions
    • Moving expenses (if employment-related)
    • Childcare expenses
    • Union dues
    • Tuition credits
    • Medical expenses
    • Home office expense (for remote workers)
    • First-Time Home Buyer Incentive (if applicable)

    Deductions reduce taxable income and increase refund eligibility.

    Step 7: Submit the Tax Return

    Using NETFILE:

    • Submit directly from your tax software
    • Get immediate confirmation
    • Track status on CRA MyAccount

    Typical refund time: 8–14 days.

    Step 8: Review Notice of Assessment (NOA)

    CRA sends a Notice of Assessment, which:

    • Confirms final tax result
    • Shows refund/amount owed
    • Lists any issues or adjustments
    • Updates your RRSP contribution limit

    Keep this document safely for future filings.

    Step 9: Pay Any Outstanding Taxes

    If you owe taxes:

    • Pay through online banking
    • CRA MyAccount
    • Approved payment partners

    Delay may trigger interest or penalties.

    Step 10: Maintain Records

    Keep all tax receipts, slips, and filings for 6 years as required by CRA.

    Special Notes for Indian Employees

    1. If you returned to India after working in Canada

    You must still file Canadian taxes for the period you worked in Canada.

    2. Indian Residents with Canadian Income

    If you earn rental income, salary, or investment income from Canada while living in India, you may need to file:

    • Canadian tax return
    • Indian tax return
    • Apply Double Taxation Avoidance Agreement (DTAA) relief

    3. Remote Workers Employed by Canadian Companies

    Tax liability depends on:

    • Whether employer has a permanent establishment in India
    • Residency duration
    • Treaty benefits

    Saving Mantra can assess your individual tax position.

    Saving Mantra Support

    Saving Mantra provides end-to-end support for Indian employees working in Canada:

    • Canadian tax return filing
    • Provincial tax advice (Ontario, BC, Alberta, etc.)
    • DTAA relief calculation
    • Residency status determination
    • RRSP optimisation
    • Tax planning for return to India
    • Canada–India dual tax compliance

    Disclaimer

    This blog provides general information about filing Canadian tax returns for Indian employees. Tax laws in Canada vary by province and may change based on CRA notifications, residency rules, and individual circumstances. This content is not legal, tax, or financial advice. For personalized tax planning, consult a licensed Canadian tax professional or seek Saving Mantra’s expert support.

  • Step-by-step: US H-1 / L-1 — Tax Return Filing for Indian Employees

    Quick summary

    H-1/L-1 employees must decide whether they’re U.S. tax residents or nonresidents, then file the correct federal return (Form 1040 for residents or 1040-NR for nonresidents) and any required state return — with FBAR/FATCA and other reporting as applicable. IRS+1

    TL;DR checklist

    • Determine tax residency (Substantial Presence Test). IRS
    • Resident → file Form 1040; Nonresident → Form 1040-NR. IRS+1
    • Federal due date (usual): April 15 (see IRS “When to file”). File Form 4868 to get a 6-month extension to file (but not to pay taxes). IRS+1
    • Report foreign accounts if aggregate > $10,000 at any time → FBAR (FinCEN Form 114). FinCEN.gov
    • If you (or spouse) don’t have SSN, apply for ITIN (Form W-7). IRS

    Step-by-step process (simple language)

    Step 1 — Work out whether you’re a U.S. tax resident

    Use the IRS Substantial Presence Test: you’re a resident for tax purposes if you were physically present at least 31 days in the current year and 183 days total using the 3-year formula (all days this year + 1/3 of last year + 1/6 of the year before). If you meet it, you generally file as a resident and report worldwide income. If not, you’re a nonresident and generally report U.S.-source income only. IRS+1

    Step 2 — Gather your income documents

    Collect:

    • W-2(s) from employer(s) (shows wages and taxes withheld).
    • Any 1099s for contract work, interest, dividends, or other income.
    • Form 1042-S if you received certain treaty-exempt or other payments.
    • Records of foreign income, foreign taxes paid, bank statements (for FBAR/8938), and proof of tax withheld.

    Step 3 — Choose the right federal form & understand what to report

    • If resident: file Form 1040 — report worldwide income, claim credits/deductions (e.g., foreign tax credit on Form 1116 if you paid tax abroad). IRS
    • If nonresident: file Form 1040-NR — report only U.S.-source income and treaty items as applicable. IRS

    (If you’re unsure: the Substantial Presence Test page gives examples and the IRS also explains tax treatment of H-1B aliens.) IRS+1

    Step 4 — Check whether the U.S.–India tax treaty helps you

    The U.S.–India tax treaty can affect how certain types of income are taxed (and may provide relief from double taxation for some items). Treaty provisions are technical—if you think a treaty article applies (for example, for certain pensions, teachers, or temporary visits), consult the treaty text or a tax advisor. IRS

    Step 5 — Watch reporting rules for foreign assets & bank accounts

    • FBAR (FinCEN Form 114): U.S. persons (which includes resident aliens) must file if the aggregate value of foreign financial accounts exceeds $10,000 at any time during the calendar year. This is filed electronically with FinCEN (separate from the IRS return). FinCEN.gov
    • FATCA (Form 8938): separate IRS reporting for specified foreign financial assets if higher thresholds apply (depends on filing status and whether you live in the U.S. or abroad). (See IRS guidance — thresholds vary.) IRS

    Step 6 — State tax return & payroll taxes

    Most states require income tax returns if you earned income there — check the state revenue department for rules and deadlines. Note: Social Security and Medicare are payroll taxes generally withheld by employers and are not reported on Form 1040 the same way income tax is (but they affect take-home pay). Totalization (social security) agreements can change coverage — India and the U.S. have been in discussions, but check current SSA/IRS guidance for status. IRS+2Social Security+2

    Step 7 — Deadlines & extensions

    • Federal filing due date: normally April 15 (use the IRS “When to file” page for this year’s exact calendar). If you need more time to file, submit Form 4868 for an automatic 6-month extension to file (not to pay). Pay any expected tax by the April due date to avoid interest and penalties. IRS+1

    Step 8 — If you or your spouse don’t have an SSN

    Apply for an ITIN (Form W-7) when required (for spouses or dependents not eligible for an SSN). Instructions and supporting documents are on the IRS W-7 page. You can often submit the W-7 with the tax return to the IRS through the correct channels. IRS

    Step 9 — File, pay any tax due, and keep proof

    File electronically where possible (faster refunds and fewer errors). Pay by bank transfer, debit, credit, or EFTPS. Keep PDF copies of filed returns, payment confirmations, W-2s, 1099s and bank records for at least 3–7 years (longer if issues or audits). Use the IRS “Where’s My Refund?” tool to track refunds. Kiplinger+1

    Common mistakes to avoid

    • Filing the wrong form (1040 vs 1040-NR) after mis-calculating residency. IRS+1
    • Missing FBAR when foreign accounts exceed $10,000 (serious penalties). FinCEN.gov
    • Not paying estimated taxes if you have large untaxed income (e.g., freelance/1099).
    • Using wrong treaty positions without documentation — treaty claims often require Form 8833 or other support. IRS

    Practical Saving Mantra tips (for Indian H-1/L-1 employees)

    • Start early: request W-2s/1099s from employers and gather bank records in Jan–Feb. IRS
    • If you worked part-year in the U.S., run the Substantial Presence Test carefully (days count exactly). IRS
    • Keep clear digital copies of all documents — you may need them for FBAR/FATCA. FinCEN.gov
    • If you paid tax in India on the same income (rare for US wages), the foreign tax credit (Form 1116) or treaty relief may prevent double taxation — get professional help. IRS
    • Use professional e-file software or a tax advisor experienced with nonresident/resident alien rules — small errors can cause large penalties or lost treaty benefits.

    Short checklist (ready to use)

    • Decide residency (Substantial Presence Test). IRS
    • Collect W-2, 1099, pay stubs, bank statements.
    • File Form 1040 (resident) or Form 1040-NR (nonresident). IRS+1
    • File FBAR (FinCEN Form 114) if foreign accounts > $10k. FinCEN.gov
    • File Form 4868 if you need more time to file (pay taxes due by April). IRS
    • Apply for ITIN (Form W-7) if spouse/dependents need one. IRS

    Where to read official guidance (quick links)

    • IRS Substantial Presence Test & residency rules. IRS
    • IRS: Taxation of H-1B / aliens by immigration status (resident vs nonresident). IRS
    • IRS: Form 1040-NR guidance for nonresident aliens. IRS
    • IRS: When to file (deadlines) & Form 4868 for extensions. IRS+1
    • FinCEN: FBAR reporting rules (Form 114). FinCEN.gov
    • U.S.–India tax treaty text (for treaty claims). IRS

    Disclaimer

    This guide provides general information only and is not tax or legal advice. U.S. tax rules (residency tests, filing forms, reporting thresholds, treaty interpretations, and deadlines) change frequently and can be complex for international employees. For personalized advice—especially about residency status, treaty claims, FBAR/FATCA rules, and state returns—consult a qualified U.S. tax professional or CPA. Saving Mantra is not responsible for actions taken based on this guide.