Taxability of foreign income received in india for nri??
This query is : Resolved
01 November 2017
Mr A has earned commission of RS . 1 cr for transaction done in Dubai.
He is NRI.
He has Non resident bank account .
Can he receive this amount in Indian Non resident bank account as tax free ??
He is NRI.
He has Non resident bank account .
Can he receive this amount in Indian Non resident bank account as tax free ??
02 November 2017
yes, he can do so. Keep the proof of remittance.
02 November 2017
If the principal transfers money from abroad to your bank account in India by way of commission, the amount so remitted is taxable in your hands irrespective of your
status being an income received in India.
status being an income received in India.
02 November 2017
income is earned outside India. At the mandate of commission earner, if the payer transfers the same to earner's indian account, it does NOT amount to income received in India. It still partakes the nature of remittance. And hence NOT taxable in India. (Just to quote the practical example.......shipping guys, other salary earner NRIs.....have a DUAL salary structure....one that is paid in local currency of the country in which they are rendering their services and two...that is paid by the employer in USD and remitted directly to the Indian account of NRI. This is taxfree subject to however the residential status of the assessee)
02 November 2017
@ Amol Ji
1. My observation is based on section 5 (1) (a).
2. Writing in the link http://www.ey.com/gl/en/services/people-advisory-services/hc-alert--india-tribunal-rules-that-salary-income-paid-by-an-employer-into-an-indian-bank-account-is-taxable-in-india-regardless-of-where-the-employee-performed-duties
1. My observation is based on section 5 (1) (a).
2. Writing in the link http://www.ey.com/gl/en/services/people-advisory-services/hc-alert--india-tribunal-rules-that-salary-income-paid-by-an-employer-into-an-indian-bank-account-is-taxable-in-india-regardless-of-where-the-employee-performed-duties
03 November 2017
Wisdom prevails.......
As I explained, there is a thin line between "income received in India" versus " income earned outside India and mandated to remit to India"
Your view please
As I explained, there is a thin line between "income received in India" versus " income earned outside India and mandated to remit to India"
Your view please
03 November 2017
I reiterate my observation. Please see page 56 of 'Direct Taxes law & Practice'
professional edition 2017 by Dr. Girish Ahuja and Dr. Ravi Gupta.
professional edition 2017 by Dr. Girish Ahuja and Dr. Ravi Gupta.
03 November 2017
Here the person is non resident section 5 (1) (a).is applicable to residents, Warrior Ji please correct me if my view is incorrect.
03 November 2017
You meant 5(2)(a).
Double Tax Avoidance Agreements do not recognise receipt as a basis of taxation
Double Tax Avoidance Agreements do not recognise receipt as a basis of taxation
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03 November 2017
I stand corrected. Section referred is 5(2)(a).
03 November 2017
01. Commission Income is earned outside India. Payer/Employer is REMITTING the said commission income on behalf of assessee, to India. Therefore income can NEITHER be said to be received NOR deemed to be received in India as contemplated in section 5(2)(a). (The querist has used the words Rs. 1 cr......This suggests that he is NOVICE)
Had the commission earned in Dubai and in Dubai INR 1 cr is paid........ not possible, since INR is not permissible in Dubai.Therre is issue of rupee convertibility.
So to say...if the money is paid in INR and in India...section 5(2)(a) comes into play......
However, if the commission is paid in currency of Dubai Or say USD in equivalent of INR 1 cr, in Dubai and then transferred by the payer/employer to India......section 5(2)(a) does NOT come into play.
Had the commission earned in Dubai and in Dubai INR 1 cr is paid........ not possible, since INR is not permissible in Dubai.Therre is issue of rupee convertibility.
So to say...if the money is paid in INR and in India...section 5(2)(a) comes into play......
However, if the commission is paid in currency of Dubai Or say USD in equivalent of INR 1 cr, in Dubai and then transferred by the payer/employer to India......section 5(2)(a) does NOT come into play.
03 November 2017
Yes paid in Dubai and then transferred to India 5(2)(a) not applicable.
05 November 2017
your view please B Chakrapani Warrier
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