Tax traetment on salary to nri


This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
20 January 2014 Hi, can any one guide me what will be the tax treatment for salary payment to NRI.

@VaibhavJ (Expert)
20 January 2014 Hi

If NRI receives salary outside india then it is not taxable rest all is taxable,

Pl refer: https://www.nritaxservices.com/faq.htm

Do write back if you have any query.

Thanks

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
21 January 2014 Thanks Dear Vaibhav. Further I would like to know if any indian company pays salary to its employee, who is the NRI, what will be the tax treatment? Is TDS applicable & if yes at what rate?

26 July 2025 Good question! Here’s a straightforward explanation about salary payments to NRIs (Non-Resident Indians) by an Indian company:

---

### Tax Treatment of Salary Paid to NRI by Indian Company:

1. **Taxability:**

* Salary income earned for services rendered **in India** is taxable in India, even if the employee is an NRI.
* Salary income earned for services rendered **outside India** is generally **not taxable** in India.

2. **TDS (Tax Deducted at Source):**

* Indian company is **required to deduct TDS on salary payments** made to NRI employees if the salary is taxable in India.
* The TDS rates for NRI individuals on salary income are as per the applicable slab rates for NRIs (which are similar to residents but without some exemptions like basic exemption limit).
* Usually, the employer deducts TDS based on estimated total income or applicable slab rates for NRIs.

3. **Double Taxation Avoidance Agreement (DTAA):**

* If the NRI employee pays tax in the foreign country on salary income, he can claim relief under DTAA to avoid double taxation.
* The NRI should disclose details of foreign tax paid while filing Indian tax returns.

---

### Summary:

* Salary for work **done in India** paid to NRI → taxable in India → TDS applicable.
* Salary for work **done outside India** → generally not taxable in India → no TDS.
* Employer must deduct TDS based on estimated taxable income.
* NRI should file Income Tax Return to claim refunds or pay balance tax.

---

If you want, I can help you with the exact TDS rates or TDS return filing process. Would that help?


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details