MANI KUMAR VEDULA (Operations Head) (49 Points)
15 June 2010Is the Income of a NRI taxable in the following case ? Which Sections are related to this case ?
He is Resident in India for 157 days.
He Accrued Income from Out Side India and that amount directly Deposited by the company to his NRE A/c in India in Foriegn Currency.
Please clarify my doubt as early as posible
PRATEEK
(ACA)
(102 Points)
Replied 15 June 2010
DEAR MANISH,
SECTION 6 OF THE IT ACT DEALS WITH THE RESIDENTIAL STATUS OF AN ASSESSE
IF AN ASSESSE IN A NONORDINARY RESIDENT OR NON RESIDENT THEN THE AMOUNT WILL NOT BE TAXABLE IN INDIA AS THE AMOUNT IS FIRST RECIEVED OUTSIDE THE TERRITORY OF INDIA ,AS I N CASE OF NR OR NOR FOREIGN INCOME WILL NOT BE TAXABLE IN INDIA.
MANI KUMAR VEDULA
(Operations Head)
(49 Points)
Replied 16 June 2010
But the Account is in Indian Bank (NRE A/C). And the amount directly deposited in to that account. Can we treated that income accrued and received out side India ?
SRINIVASA MURTHY
(Asst Manager (Finance))
(186 Points)
Replied 16 June 2010
Dear Mani, further to the explanation given by Mr. Prateek, the income accrued and earned outside India by an NRI is not liable to tax in India.
NRIs are taxed only on their Indian income, i.e., income accrued and earned in India . Income earned outside India which is later remitted to India is not taxable in India
CAclubindia
