Suresh Pai S (Tax Consultant) (1029 Points)
20 March 2017
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 20 March 2017
salary received by non resident outside india is not taxable even though he has received his funds in a bank account operated in india
Suresh Pai S
(Tax Consultant)
(1029 Points)
Replied 20 March 2017
Suresh Pai S
(Tax Consultant)
(1029 Points)
Replied 20 March 2017
Abhinav
(CA)
(397 Points)
Replied 21 March 2017
Salary is paid by an INDIAN company and/or service is rendered in India is taxable in India irrepective of residential status, received in Indian bank account or outside etc.
In your case, it is NOT taxable in India however there is a scope for litigation as the Income Tax Department will try to tax it - it needs to be defended well - check this post for case laws/judgements that you can use: NRI Seafarer Taxation: Way forward after 2016 ITAT Tapas Kr. judgement
Thanks!
Suresh Pai S
(Tax Consultant)
(1029 Points)
Replied 21 March 2017
Abhinav
(CA)
(397 Points)
Replied 04 April 2017
Thank you for the kind words. A non-resident as per FEMA can only maintain non-resident accounts (e.g. NRO/NRE etc.) - he cannot maintain a resident account - so, maintaining a resident account will be a FEMA violation in the first place.
Both NRE (or for that matter NRO) or a resident account is an Indian account - irrespective of which account the salary is credited in, ITD can try to tax it (as explained in my previous response)
Thanks!
CAclubindia
