If I am getting salary in USD from which I want to transfer a particular amount (say Rs. 2 Lakhs p.m.) to my NRO account in India, do I need to pay income tax on this amount in India ?
P.S : I know that the interest on this amount is taxable. I just want to know whether the principle amount i.e. Rs. 2 lakhs pm is taxable in India or not.
So I understand that whatever amount I transfer to my NRO account, I dont pay any tax in India. I only pay a tax on the interest earned on the NRO account. Is that correct ?
25 June 2014
yes.. but please ensure that your salary is never directly credited to your NRO account by your employer....it should always be first received in your account outside India and then transferred to the account in India.
CAclubindia
