- Sneha Khilwani shared insights on living in India as OCI cardholders after 10 years in Canada
- OCI holders can work freely in India except in government and journalism roles
- Income is taxed where earned, with India-Canada Double Taxation Avoidance Agreement in place
After spending 10 years in Canada, Sneha Khilwani and her family recently returned to India and shared their experience as Overseas Citizen of India (OCI) cardholders. In an Instagram video, Sneha and her husband addressed questions about their decision on Instagram, tackling queries on jobs, taxes, buying property, and their plans for a long-term stay. In the video, Shena revealed that her family of four are Canadian citizens living in India on OCI status.
Notably, OCI stands for Overseas Citizen of India. It's a status given to people of Indian origin who have foreign citizenship, offering benefits like a lifelong visa to visit India, the ability to live and work in India, the right to buy property, and access to education and healthcare like Indian nationals. While the status offers considerable flexibility, it also comes with clearly defined rules.
"So many DMs about OCI after our move back to India 🇮🇳. Putting all the important OCI info in one reel for anyone planning the same journey. Hope this helps," the video was captioned.
The couple said employment remains one of the biggest concerns for Indians living abroad. According to them, OCI holders are permitted to work freely in India, with a few notable exceptions. They explained that OCI holders cannot work for the government or in journalism, but private-sector roles are open to them.
They added that employers generally respond positively to candidates with foreign passports and that OCI holders typically face no issues in the hiring process. They also noted that OCI holders are eligible for EPF benefits, just like other employees.
Check out the video here:
On Taxation
Another major concern for families living abroad is taxation. Sneha explained that income is taxed in the country where it is earned, whether in India or Canada. The couple further noted that India and Canada have a Double Taxation Avoidance Agreement in place, which prevents the same income from being taxed twice. They added that if tax is paid in one country, it is taken into account by the other while calculating the final tax liability.
On living in India with an OCI:
OCI holders can live in India for as many years as they wish. An OCI functions as a lifelong visa, allowing individuals to live and work in the country indefinitely without the need for periodic renewals.
On owning property in India:
OCI holders are permitted to purchase property in India, including flats and houses. However, there is one important restriction. They are not allowed to own agricultural land. The couple noted that this rule often comes as a surprise to returning OCI holders, particularly those hoping to invest in farmland or inherit ancestral agricultural property.
On Education
For parents, education is also a major concern. Sneha addressed a common misconception by explaining that school fees are not higher for OCI students, as primary and secondary schools generally charge the same fees regardless of nationality. However, the situation changes at the university level, where many Indian institutions charge higher fees for foreign nationals. She advised OCI holders to check the fee structure of individual universities before applying.
Sneha also noted that Canadian passports can be renewed from India and that OCI documents can be updated when required, adding that OCI status itself does not expire and only periodic photo updates are needed.
The couple further pointed out that OCI holders are not subject to different tax treatment despite not being Indian citizens.
