Do OCI card holders who are earning and residing in India need to pay taxes in the country they have their citizenship in?

One thing I'd add is that filing and actually owing tax aren't necessarily the same thing.

A US citizen living in India might have to file a US return and report worldwide income, but foreign tax credits or other provisions may reduce the additional US tax payable. The IRS specifically notes that foreign taxes paid may potentially qualify for a foreign tax credit.

There can also be separate foreign-account reporting requirements. For example, US taxpayers abroad may have FBAR obligations when the aggregate value of qualifying foreign financial accounts exceeds the applicable threshold.

So for an OCI holder living in India, I would first determine:

• Indian tax residency
• Citizenship-country tax residency rules
• Type and source of income
• Foreign tax credit or treaty provisions
• Any foreign-account reporting requirements

Tax rules can change, so it's better to check the current rules for the specific citizenship country and tax year.

I think it's important to separate citizenship, immigration status and tax residency.

Being an OCI holder doesn't automatically make you a tax resident of India, although someone actually living and working in India may meet the applicable Indian tax-residency rules.

At the same time, citizenship doesn't have the same tax consequences everywhere.

The US is the obvious example. I have US citizenship and live outside the US, and I still have to consider US federal reporting because the IRS generally taxes US citizens on worldwide income regardless of where they live.

The fact that I pay Indian income tax doesn't by itself remove the US filing requirement.

There can be relief from double taxation, but you need to calculate it under the applicable rules rather than simply assuming that Indian tax replaces US tax.

For another citizenship country, I'd check that country's tax authority because the answer could be completely different.

The answer depends heavily on the country of citizenship and its tax rules.

For example, the US is unusual because US citizens generally remain subject to US federal income tax on worldwide income even when they live abroad. The IRS confirms that US citizens living outside the US are generally subject to US tax on worldwide income.

So a US citizen who has an OCI card, lives and works in India and earns a salary in India may still have US filing obligations.

That doesn't necessarily mean they pay the full tax twice. The US provides mechanisms such as the Foreign Tax Credit, and eligible taxpayers may also qualify for the Foreign Earned Income Exclusion. The exact result depends on the person's income and circumstances.

I wouldn't assume the same applies to someone with British, Canadian or Australian citizenship. Those countries have their own residency and tax rules.

OCI itself doesn't determine your tax obligations in another country.