SALARY CREDITED THR NEFT IN NRE ACCOUNT FOR SALARY EARNED IN

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2011 IF A PERSON IS not ordinary resident during the P.Y. and earned a salry outside india and the same was credited to HIS NRE Account through NEFT WHETHER IT IS TAXABLE OR NOT

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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15 July 2011 Here the place where the services were rendered is to be seen.

As per my understanding, if services have been rendered outside India then the salary even though RECEIVED in INDIA should not be taxable.

However the Department shall always try to tax the same in INDIA on RECEIPT basis under sec.5 of Income Tax Act.

there are few case laws which support the non taxability of such receipts.

Anuj
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