Taxation for Remote Working in India for a UK Firm

This query is : Resolved

D M (Querist)
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25 May 2024 Hi Everyone,
I am a UK citizen and planning to move to India and work remotely for my UK Firm and receive UK salary in UK Bank Account.

As I will be in RONR for first 3 Years as per my understanding so I have below queries
1.If I am working remotely for a UK Firm and receive UK Salary in a UK bank Account will this Income be taxed in India.(I have not been in India for the last 5 Years)
2.If I want to move to UK Salary Income to India what Indian Bank account should I open ?
3.After spending 3 years being resident in India will the income earned in previous financial years be taxed in India.

Appreciate your help.

Thanks,

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 May 2024 1. No till your status in not ROR.
2. NRE & or NRO acc.
3. From the year you become ROR.

D M

D M (Querist)
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25 May 2024 Hi Dhirajlal,
Thanks a lot for quick response.Regarding the Bank Account If I am resident in India the NRE & NRO accounts become invalid as per bank website.Is there somewhere I have to declare I am RNOR when opening a Bank Account or move Foreign Income to Indian Bank Account for first 3 Years.

Thanks,

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 May 2024 Yes, NRIs/PIOs/OCIs can open an NRO account. Under prevailing FEMA regulations, you will be considered an NRI if:

You are residing overseas (except Nepal or Bhutan) for more than 182 days in one Financial Year (April–March);

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 May 2024 Refer: https://www.sbi.co.in/web/nri/accounts/eligibility-fcnr

D M

D M (Querist)
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25 May 2024 thanks for clarifying. Just another query regarding once i become ROR salary from UK I will be paying UK Tax and then I will have to Indian Tax as well. Is there DTAA with UK to avoid double taxation and how it works.. are there any links to understand it better.Are there any forms I need to fill in to specify UK Income tax paid ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 May 2024 Refer:
https://cleartax.in/s/claim-tax-credit-on-foreign-income-of-resident-indian
&/or
https://taxguru.in/income-tax/claiming-credit-taxes-paid-foreign-countries.html

D M

D M (Querist)
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26 May 2024 Thanks Appreciate a lot for your help.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 May 2024 You are welcome.