Work from anywhere: No tax on short stays in India, experts suggest ahead of Budget 2026

Work-from-anywhere has become a key feature of the employment scene in both India and abroad, especially after the Covid-19 pandemic. Many companies now offer their employees the flexibility to work from home, or anywhere, which has resulted in the culture of ‘home is where WiFi is’. 

With rapid adaptation of work-from-anywhere (WFA), industry bodies are now urging the Indian government to modernise its tax framework to keep pace with the changing work environment.

Ahead of the Union Budget 2026, experts at the Bombay Chamber of Commerce and Industry (BCCI) have suggested tax relief for foreign employees and NRIs who work from India for short periods of time to ease remote working and attract top talent. 

What is the rationale behind this?

Most multinational companies (MNCs) now allow employees to work remotely from anywhere. This hybrid model attracts top Indian talent working for global firms. 

Currently, Section 10(6)(vi) grants tax exemption for short stays, but only if:

• The individual is a foreign citizen

• The foreign company does not carry on any business in India

Due to this, it’s difficult for NRIs working for global firms and employees of MNCs that have some business presence in India to claim this exemption, even for a short visit that has no connection with Indian operations.

“While s.10(6)(vi) grants a short stay exemption for working in India, it is restrictive in its scope only to foreign citizens and only if the foreign enterprise is not engaged in any trade or business in India. Both these conditions make it difficult for NRIs to claim the benefit of such short stay exemption,” the BCCI said in its pre-budget memorandum. 

While many NRIs seek short-stay relief under the treaty, claiming the benefits also involve additional compliance, like Form 10F, TRC, etc. This makes it more complex for individuals to get any tax relief. 

“It is true that such an NRI can claim short-stay exemption under the treaty, which is more liberal in scope, but claiming treaty benefits requires additional compliance, like Form 10F, TRC, etc. The presence of employees working from India also exposes the foreign company to triggering “business connection” or PE in India, triggering taxation and additional compliance requirements," the BCCI said. 

Further, employees working remotely from India can expose foreign companies to ‘business connection’ risk or Permanent Establishment (PE) exposure in India. This could trigger taxation and other compliance issues. 

BCCI recommendations

BCCI has recommended that short-term work stays of up to 30 days in India should not be taxed, and employees of foreign companies should be granted an exemption for short stays. 

“It is recommended that a short stay exemption (up to 30 days) should be granted to employees of foreign companies working in India for conducting foreign business. Accordingly, there should not be any corporate tax implications on foreign companies,” the BCCI said. 

It recommends that there should be no tax implications for the employee visiting India for a short stay. 

According to the BCCI, the liberalisation of Section 10(6)(vi) will promote ease of remote working arrangements with tax certainty and reduce work burden on the revenue authorities. 

“Such an exemption could avoid litigation and thereby reduce work burden on the revenue authorities. Leading countries such as the UAE and Thailand have adopted such models. This promotes cross-border movement for India as well as foreign employees and ease of remote working arrangement with tax certainty,” it said. 

At a time when remote work has become mainstream, industry experts believe that Budget 2026 can modernise tax laws and support flexible work arrangements to make short-term work visits to India simpler and tax-efficient.