Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Taxation of nri income

NISHA AGARWAL (Chartered Accountant) (454 Points)

14 June 2018

A NRI is working in Democratic Republic of Congo (in Africa). The Head Office of the Company is in U.A.E. and the salary was transferred to his Savings Account for 9 months and thereafter to his NRE Account.

The query is how will he be taxed?

Reply
Follow
Share

8 Replies

SushantSingh (Others) (110 Points)
Replied 14 June 2018

It would have been better to convert the domestic savings account to NRE account. That would have been the most logical thing to do.

Upgrade to CAclubindia Pro. Subscribe Now!

sonu kumar Choudhary (Chartered Accountant) (145 Points)
Replied 14 June 2018

Not taxable in india

NISHA AGARWAL (Chartered Accountant) (454 Points)
Replied 16 June 2018

Originally posted by : SushantSingh
	It would have been better to convert the domestic savings account to NRE account. That would have been the most logical thing to do.

how do we show salary received in NRE account in the ITR?

SushantSingh (Others) (110 Points)
Replied 16 June 2018

Why are you reporting income received as NRE in your ITR ? you are taxed on the income you receive in India. Even if you received amount in your domestic savings account, that was earned when you are outside India. You should however meet 182 days criteria .

1 Like

NISHA AGARWAL (Chartered Accountant) (454 Points)
Replied 18 June 2018

Originally posted by : SushantSingh
	Why are you reporting income received as NRE in your ITR ? you are taxed on the income you receive in India. Even if you received amount in your domestic savings account, that was earned when you are outside India. You should however meet 182 days criteria .

so you are saying that return is not to be filed?

Upgrade to CAclubindia Pro. Subscribe Now!

sonu kumar Choudhary (Chartered Accountant) (145 Points)
Replied 20 June 2018

Salary Income is taxable in the country of source, So follow the rule of that country and relevant DTAA with that country .

1 Like

SushantSingh (Others) (110 Points)
Replied 20 June 2018

If you have spent more than 183 days in Congo during that FY, then you are non resident and you may choose to file taxes as non resident, wihout including the income earned abroad in your ITR.

1 Like