Nri income tax question, please help??

Tax queries 429 views 7 replies

Simran Vora

Manager

46 Points Joined July 2014

Hello-

I am a freelancer working in India at present and my main income stream has been from clients in the US and the money is deposited directly in my personal savings bank account every month.

I have now found a permanent job in Dubai and will be moving for long term by this month end, I will continue to work for the US client part time from Dubai.

From what I understand, if I live outside India for more than 6 months I will be considered NRI.

Can someone please help me with queries?

1. Will the income that was generated upto now in this FY be taxed in India?

2. Will the income that will be generated from now on when I am in Dubai be taxed in India?

3. I do not want to change the bank account settings just yet, so the payment from US clients will continue to deposit in the Indian savings a/c. If I receive the income in Indian a/c will I be taxed since the income might seem like was generated in India? (This is most confusing query, please help)

Please help with your valuable inputs.

Simran

Replies (7)

Udgam Koomar

Tax Technologist

1949 Points Joined August 2011

It depends on how its paid but Dubai income after NRI period will be tax free. The other income is taxable as income is deemed to be accruing in India. You also have to pay advance tax depending on the tax amount.

Anita Chinnari

practice

30 Points Joined March 2011

Hey simran Can u plz let me knw what type of work you are involved with US clients as you said mainstream of income is from them..can u brief me d nature of income ....send me a mail anitachinnari @ gmail.com / anita @ vnv.ca Regards, Anita Chinnari 9819445021

Suren

ASE

117 Points Joined May 2011

Hi ,

I am not an expert but here are my views on this ..
1. Will the income that was generated upto now in this FY be taxed in India?

-- The income that is generated in India will be taxed in India.

2. Will the income that will be generated from now on when I am in Dubai be taxed in India?

- Depends on your residential status . If your status remained as NRI , then NO.

-- You are not allowed keep savings account in India if your status is NRI or non-resident.

Thanks

Suren

Shreekar Pai

B.Com

28 Points Joined August 2015

After going to dubai if your money directly received by Indian bank , then it is taxable as income received in india (Even if you are NRI )

suresh Agarwal

34 Points Joined February 2010

Yeah income received in India directly in bank is taxable in India and income earned earlier in India is taxable in India but if during the financial year if leave in Dubai 182 days due to employment and income earned out side India and received out side India is not taxable in india

Siddharth

article

96 Points Joined March 2011

As per my view income recd abroad when ur status is nri is totally tax free as it is just remittances of money earned abroad as income not accrued or arise in india mere receiving foreign income in indian saving ac not liable u to pay tax in india

suresh

proprietor

425 Points Joined May 2011

You must change your bank account once u become an NRI for two reasons 1 You be an NRI open an NRE accont 2. get remmitance of your U.S. income directly to an account out side India to avoid confusions about the perview of income accrue and arise in INDIA.