Nri tax calculation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2017 Hello,

If I am RESIDENT under definition of INCOME TAX ACT but NON RESIDENT under definition of FEMA act, how my income will be taxed, if my income is as below :-

Salary Income from my overseas employer, getting in my overseas account RS12,000,000
Interest on NRE fixed deposit Rs 6,000,000

*I live in UAE, so is there any DTAA benefit will be applicable ?..

Regards
Pkc

Mayur

Mayur (Expert)
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13 January 2017 1. For Income tax, there are two resident status possible. a. Resident and ordinary resident & b. Resident but not ordinary resident. Both have different tax implication for the given case as follows:

For "a" it is taxable subject to DTAA available if any. (For UAE there exist a DTAA)
For "b" it is not taxable.

Interest in NRE Deposit is not taxable in any case (Either a or b)

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2017 Dear Mayur Ji,

Can you please clarify with below mentioned details :-

I am NRI since 1996 but for year 2014 and 2015, I have stayed more than 182 days in India and thus I fall in RNOR category during those 2 years but in 2017, if I stay here more than 182 days, I will become 'Resident' under ITA act but remain 'Non Resident' under FEMA, as I am still working in overseas and getting my salary there.

Please let me know, what will my taxable Income, if I stay for more than 182 days in India in coming years, if

a) My Salary is 12,00,000/yearly in UAE, I get paid in overseas account.
b) My NRE FD interest is 6,00,000/yearly
c) My Rent income is 150,000/yearly in India

*Can you please calculate and let me know, what will be taxable here.

*There is DTAA treaty between UAE and INDIA but how it will be applicable on above Income, as my known CA
doesn't know much about NRI taxation..

*Shall I keep getting tax free Interest, if I remain NRI under Fema but Resident under INCOME TAX ACT.
(Under section 10(4)ii of income tax act)

I will appreciate, if you calculate and let me know. Prakash pra0343@yahoo.com 9six3six8xix0343

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Mayur

Mayur (Expert)
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13 January 2017 Hello Prakash,

You are asking about Chargeable Services.

Querist : Anonymous

Querist : Anonymous (Querist)

13 January 2017 Its okay, plz give me a miss call and we will discuss n fix.