17 July 2010
Hi, A person is employed by italy based company as a crew member.He has a citizen ship of India & his stay in INDIA is less than 60 days in the Previous year,i.e he is not a resident of India.His Italy based company pays salary to him in his Indian bank account in Foreign exchange & not deduct any TDS or TAX on his remittance. My question is if we treat him as a NON Resident whether his salary is taxable in INDIA coz of received in INDIA.
My seniors view is that he is not providing any service to Indian company & he is just receiving his salary in India & dats why his salary is not taxable here. But my view is differet from my seniors.
18 July 2010
My understanding is as follows:- I understand that the employer is sending the employees salary directly to the latter's bank account in India. If it is so, the income is received in India and the employee is liable to pay tax as per Income tax Act,1961.