Need of documents, when non resident employee resigned

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2013 Dear All

When Non Resident employee Resigned from the company then what certificates or documents will have to issue to such employee by the employer as a company?

rajiv

rajiv (Querist)
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04 May 2017 NOC from relevant income tax authorities, ITR must be filed for all relevant period, Tax Liability should be properly deposited I.e., Income tax, EPF

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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03 August 2024 When a non-resident employee resigns from a company, the employer needs to ensure that all legal and compliance requirements are met. Here’s a detailed list of the documents and steps involved:

### 1. **Relieving Letter / Resignation Acceptance Letter**

- **Content:** This should formally acknowledge the resignation of the employee and confirm that their resignation has been accepted. It should also state the last working day and mention that they have been relieved from their duties.
- **Purpose:** Provides proof of employment end date and is useful for future employment or visa purposes.

### 2. **Experience Certificate**

- **Content:** This document should detail the employee's tenure with the company, their role, and a brief description of their responsibilities and performance.
- **Purpose:** Useful for future job applications and verifying work history.

### 3. **Full and Final Settlement Statement**

- **Content:** A statement detailing the final settlement amount, which includes any pending salary, leave encashment, and other dues. This should also account for deductions like taxes.
- **Purpose:** Ensures transparency in the financial dealings between the employee and the employer.

### 4. **Form 16**

- **Content:** A tax certificate issued under Section 203 of the Income Tax Act, showing the total income earned by the employee and the tax deducted at source (TDS) during their tenure.
- **Purpose:** Essential for the employee's income tax filing in India.

### 5. **No Objection Certificate (NOC) from Income Tax Authorities**

- **Content:** If applicable, this certificate indicates that the employee has cleared all tax liabilities with respect to the income earned in India.
- **Purpose:** Ensures that the employee's tax obligations are settled, especially important if they are returning to their home country or transitioning to another country.

### 6. **Tax Clearance Certificate**

- **Content:** Certificate from the employer confirming that all applicable taxes, including TDS, have been deducted and deposited with the tax authorities.
- **Purpose:** Provides proof that the employee's tax liabilities have been met.

### 7. **Provident Fund (EPF) and Other Benefits**

- **Provident Fund Withdrawal Forms:** If applicable, assist the employee in filing for the withdrawal or transfer of their provident fund contributions.
- **Content:** Ensure that all contributions to EPF and other applicable benefits have been settled.
- **Purpose:** Ensures compliance with employee benefit regulations and facilitates the transfer or withdrawal of funds.

### 8. **Final Tax Return Filing**

- **Requirement:** Ensure that the employee has filed their tax returns for all periods they were employed, including any final returns if they are leaving India.
- **Purpose:** Compliance with Indian tax laws and avoidance of any future tax issues.

### 9. **Customs and Exit Documentation (if applicable)**

- **Content:** If the non-resident employee is leaving India, assist with any exit formalities or documentation required for their departure.
- **Purpose:** Ensures smooth transition and compliance with immigration and employment laws.

### Summary of the Process:

1. **Issue Relieving Letter and Experience Certificate.**
2. **Prepare Full and Final Settlement Statement and provide Form 16.**
3. **Ensure all tax liabilities are settled and issue NOC from Income Tax Authorities if applicable.**
4. **Assist with EPF and other benefits withdrawal or transfer.**
5. **Confirm the employee has filed all required tax returns.**
6. **Complete any additional exit documentation if required.**

It’s important to maintain records of all these documents and ensure that all compliance requirements are met to avoid any future issues for both the employee and the company.

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