Income Tax applicability for Service to Nigerian Government
This query is : Resolved
29 July 2020
Dear Experts,
One of my relative had gone to Nigeria to render Information Technology related Service to Nigerian Government Department. The Project was for a limited duration. He is having Indian PAN Card. His remuneration was remitted in his account in a Bank in India. They had not deducted any tax. He was told there that, his Service Income received from that Government was not taxable either in India or in Nigeria. I searched 'Nigerian Federal Inland Revenue Service' website. I could not find any information in this matter. Kindly guide us-whether his income from Nigerian Government is exempted from Income Tax in India.
With thanks,
Ramaswamy.T
One of my relative had gone to Nigeria to render Information Technology related Service to Nigerian Government Department. The Project was for a limited duration. He is having Indian PAN Card. His remuneration was remitted in his account in a Bank in India. They had not deducted any tax. He was told there that, his Service Income received from that Government was not taxable either in India or in Nigeria. I searched 'Nigerian Federal Inland Revenue Service' website. I could not find any information in this matter. Kindly guide us-whether his income from Nigerian Government is exempted from Income Tax in India.
With thanks,
Ramaswamy.T
29 July 2020
What is his residential status.
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29 July 2020
Thank you Sir for your spontaneous reply. He is Indian resident. He was in Nigeria in two or three trips with some gap, that is no continuity. I think he was there for less than 120 days in the FY 2019-20.
I have asked him for correct information. Kindly let me know whether his Income for his Service to Nigerian Government is exempted from tax. As he was told that, that was exempted, he had not paid advance tax in India.
I have asked him for correct information. Kindly let me know whether his Income for his Service to Nigerian Government is exempted from tax. As he was told that, that was exempted, he had not paid advance tax in India.
30 July 2020
IF HE IS RESIDENT IN INDIA, IN THAT CASE THE INCOME IS TAXABLE IN INDIA AND HE HAS TO PAY THE TAXES AS PER INCOME TAX SLAB APPLICABLE ON HIM
30 July 2020
Being resident in India the income is taxable in india.
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31 July 2020
Thanks to CA Mr.Seetharaman Sir and Expert Mr.Bakshi for the reply. I collected correct information that he was in Nigeria for 309 days in 2019-20 rendering Information Technology related Service to ECOWAS, a Govt.Organisation. He was in India only for 56 days. So as an NRI his Income is not taxable in India. But it is said that the remuneration for Nigerian Government Service is exempted from tax in that country. But I could not collect evidence to that effect from Nigeria Income Tax Act.. As he was told that his service remuneration there was exempted from IT, he had not paid Income Tax there for that Income. On 02.02.2020 our FM had told that NRIs’ income abroad would not be taxed in India unless it was derived from an Indian business or profession to make the NRIs to have money earned in overseas in their hands. She told that an NRI was out of the tax net. Kindly guide us. It will be useful for other such persons.
31 July 2020
Yes NRI s are outside the taxnet of India.
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