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Income from other country

gaurav (M.Com) (25 Points)

18 January 2017

Hello Freinds , I am Gaurav , Please help me , as i am in kenya .I came on 12th oct 2016 for 2 year .So i received my salery Apr- Sep in India & After sep received salary in india but earned in Kenya . So how to i file my return as a Resident or NRI & i have to show only india salary or i have to show both (India & kenya Salary). Mail Id : gauravjha.jha752 @ gmail.com

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182355 Points)
Replied 18 January 2017

As your stay in India exceeded 182 days for FY 2016-17, as per IT act, you will be considered as ordinary resident.

All your salary income of India and of Kenya, alongwith any other income/gains will be taxable in India.

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Abhinav (CA) (397 Points)
Replied 20 January 2017

Gaurav,

Based on the limited facts provided by you, your residential status seems to be "Resident and Ordinarily Resident" for FY 2016-17. Both your Indian and Kenyan salary income will be taxed in India.

You can take credit of taxes paid in Kenya in your Indian tax return. This applies even if India and Kenya do not have a DTAA.

Take special precaution to disclose your foreign income and assets in Schedule FSI and FA respectively otherwise there is penalty (even jail term) under the Black Money Act.

Asides:

Try not to take credit of salary directly in Indian bank account (that too preferably NRE, not NRO)- in such case, it will become taxable to you in India irrespective of your residential status - better option is to take the credit in Kenyan bank account & then remit it to India

In hindsight, you could have planned your departure from India in such a way that your stay in India was less than 182 days - that way, you could have claimed NR status in FY 2016-17.

Thanks!

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