Taxability of income

This query is : Resolved

Chetan Pal Singh (Querist)
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28 June 2013 The assessee is a Non Resident Indian during the past 3-4 years. He is working in an oil field in Iraq and does not have Bank Account in Iraq. His job is to extract oil from the oil fields. He has received salary from a MNC directly in his bank account at Bombay ,India . Whether his salary is taxable in India or not ?

Guest

Guest (Expert)

29 June 2013 Any income received in India is fully taxable.
Hence salary is taxable in your case.

Chetan Pal Singh

Chetan Pal Singh (Querist)
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01 July 2013 I do agree with you Sir that any Income received in India is fully Taxable, here the assessee is working outside India and and the place of accure and arise of Income is outside India. Do mere receipt in the Indian Bank Account can form part of Income to be taxable in India.?
As the salary is remitted from the MNC to India..
Please clarify..

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Guest

Guest (Expert)

01 July 2013 yes, mere receipt will make the amount fully taxable in India.

For more explanation , as per Section 5:

Subject to the provisions of this Act, the total income of any previous year of a person who is a non-resident includes all income from whatever source derived which—

(a) is received or is deemed to be received in India in such year by or on behalf of such person ; or

(b) accrues or arises or is deemed to accrue or arise to him in India during such year.

Explanation 1.—Income accruing or arising outside India shall not be deemed to be received in India within the meaning of this section by reason only of the fact that it is taken into account in a balance sheet prepared in India.

Explanation 2.—For the removal of doubts, it is hereby declared that income which has been included in the total income of a person on the basis that it has accrued or arisen or is deemed to have accrued or arisen58 to him shall not again be so included on the basis that it is received or deemed to be received by him in India.