Going for abroad for employment - tax status in india.

This query is : Resolved

Harikrishnan (Querist)
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11 August 2014 We all know that for those who go for employment outside India for firs time, if stay in India is more than 182 days in that FY then, he or she will be considered as resident for that FY and all salary/income earned abroad will be fully taxable in India.

This is the plain reading of the section.

I seek the the forum's advice on the following is there any tax planning possible in the following scenario ?

If one goes abroad say in the month of October or November to a Gulf country and his monthly income in that country is Rs.4 lakhs p.m.- will his taxable income include Rs. 20 lakhs ( 5 months *4 lakhs ) ? This looks pretty absurd to me. There is no income tax in the Gulf countries and hence double taxation benefit is not applicable also. Thus one has to shell minimum of 12 lakhs i.e. 30% of Rs. 20 lakhs of hard earned money just because of few days delay in departure ??
Does this also means one has to go before 30th September or should not accept any employment abroad till 31st march ?

Would appreciate views on this since I gets this query from many youngsters who wants to go abroad for employemnt

with best regards

Harikrishnan

Nikhil Kaushik

Nikhil Kaushik (Expert)
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11 August 2014 1. Yes the rule applies like this only.

2. Yes the tax is to be paid in India

3. 30% of 20 lakhs, is Rs 6 lakhs!!

4. yes it is advisable to do better tax planning and plan your departure accordingly.