Foreign remittance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2015 Hi Everyone, I have moved to Hong Kong for a job on 22 Sept 2014. I was previously working in India and was paying regular income tax for last 3 years.

I have borrowed some money from my company in form of advances. Can I remit this money to my NRE account even though I am not qualified to be NRI by definition?
Will there be any tax implications?

The definition of NRI says that I have to be out of India for more than 182 days, while my stay abroad is lesser than that. Thats why the cofusion.

Further, for my work I have traveled twice to India. Once in Dec and next in Feb, each time for a week.

Please help me here as I am really confused what to do. Many thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 March 2015 Tax implication will not arise due to remittance, so remit the amount and repay the borrowing.
The concept of residence under the Income-tax Act depends upon the actual number of days for which one stays in India, whereas that under exchange control laws also depends upon the intention to stay in India or to stay abroad. A person would be a resident of India for income-tax purposes if he is in India for more than 182 days during the fiscal, beginning 1 April and ending 31 March.