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Indian couple returns after 10 years in Canada, explains OCI rules on jobs, taxes, property
The couple said that while the OCI status offers significant flexibility, it also comes with clear rules.
After spending a decade in Canada, Sneha Khilwani and her family have moved back to India on Overseas Citizen of India (OCI) status. In a recent Instagram video, Sneha, along with her husband, addressed some of the most common questions they received about working, paying taxes, buying property and staying in the country long-term.
In the clip, Sneha explained that all four members of her family are Canadian citizens but now reside in India as OCI cardholders. While the status offers significant flexibility, it also comes with clear rules. So, the couple sat down to make a video addressing some of the most frequently asked questions.
The couple said one of the biggest concerns among Indians living abroad is employment. According to them, OCI holders are allowed to work freely in India with a few key exceptions. “You can’t work for the government, and you can’t work as journalists,” they noted, adding that private-sector opportunities remain open.
Taxes are another major worry for families earning across countries. Sneha clarified that income is taxed in the country where it is earned. “You pay taxes where you earn your income from, be it India or be it Canada,” they said. The couple also highlighted that India and Canada have a Double Taxation Avoidance Agreement, ensuring the same income is not taxed twice. If taxes are paid in one country, the other recognises the payment and adjusts the liability accordingly.
Further, the couple addressed whether OCI holders can stay in India long-term. To this, Sneha said yes, adding that it is one of the biggest advantages of the status. There is no limit on how long OCI holders can live in India, making it an attractive option for families planning a permanent return, the couple said.
What you can and cannot buy?
The couple said that OCI holders can purchase residential and commercial property, including flats and houses. However, they cannot buy agricultural land. “You can own any property in India except agricultural land,” the couple clarified.
How do employers react to a foreign passport?
To this, the couple said that employers generally respond positively to foreign passports, and OCI employees are eligible for Employees’ Provident Fund (EPF) benefits like other workers.
Education costs
Addressing another common myth, Sneha said school fees are typically not higher for OCI students at the primary and secondary levels. However, some universities charge foreign-national rates, so families should check with individual institutions before applying.
Passports and paperwork and more
Canadian passports can be renewed from India, and OCI documentation can also be updated locally. Sneha pointed out that the OCI itself does not expire. “OCI actually doesn’t need to be renewed. You just need to update your photos periodically,” she said.
Despite not being Indian citizens, OCI holders are not taxed differently based on nationality. “You will not be taxed differently as you’re not an Indian,” the couple confirmed.
Summing up their experience, the family said OCI offers considerable freedom but does not grant full citizenship rights. OCI holders can live and work in India indefinitely, but cannot vote, take up government or journalism roles, purchase agricultural land, and may require special permissions to visit certain protected areas.
