Indian family returns after a decade from Canada; explains OCI rules on job, taxes, property

Indian family explains what OCI status allows and restricts. (Image credit: snehafamilytales/ Instagram)

After spending 10 years in Canada, Sneha Khilwani and her family returned to India on Overseas Citizen of India (OCI) status. In an Instagram video, Sneha, along with her husband, answered some frequently asked questions about working, paying taxes, buying property and long-term residence in India.

In the video, Shena shared that all four family members hold Canadian citizenship. They currently reside in India under OCI status. While the status offers flexibility, it also has defined rules, which led the couple to answer common queries.

The couple said employment is one of the biggest concerns for Indians living abroad. According to the OCI, holders can work freely in India, barring a few restrictions. They said, “You can’t work for the government, and you can’t work as journalists.”

Another major concern for families living abroad is taxes. Sneha explained that income is taxed in the country where it is generated.  “You pay taxes where you earn your income from, be it India or be it Canada,” she said.

The couple further explained that India and Canada are covered by a Double Taxation Avoidance Agreement, which ensures the same income is not taxed twice. If the tax is paid in one country, the other country accounts for it while calculating liability.

The couple also addressed questions about a long-term stay in India. Sneha said OCI holders can stay in India without any time limit. The couple described this as one of the key benefits of OCI status for families planning a permanent return to India.

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A post shared by Sneha Khilwani (@snehafamilytales)

What OCI holders can and cannot buy

According to the couple, OCI holders can buy residential and commercial properties in India, but are not allowed to purchase agricultural land.

Education costs for OCI citizens

Sneha said school fees at the primary and secondary levels are generally the same for OCI students. However, some universities may charge foreign-student fees.

Passports and paperwork 

According to Sneha, Canadian passports can be renewed from India, and OCI documents can also be updated, added that OCI status does not expire. “OCI actually doesn’t need to be renewed. You just need to update your photos periodically,” she said.

The couple highlighted that OCI holders are not taxed differently despite not being Indian. “You will not be taxed differently as you’re not an Indian.”